The choreographer announced on Twitter that he will leave the judging panel for the ITV show's upcoming eighth series.
Jason Gardiner will replace him on the panel, having previously left after the 2011 series.
Spence tweeted: "To all asking no I won't be judging @Dancingonice this year Jason is back ..."
He added: "Can't wait to watch @officialJasonG on @dancingonice he will spice up the ice, go guuurrrrrlllll lol"
Gardiner was linked with a return to the show earlier this month. However, sources previously claimed that it wouldn't necessarily lead to Spence's departure.
The Australian will join Robin Cousins on the panel, while a new female judge will also replace the outgoing Katarina Witt, according to The Sun.
Jason Gardiner's return may cause friction with Dancing on Ice coach Karen Barber, with the pair reportedly not speaking since falling out last year.
Former X Factor winner Shayne Ward is among the stars rumoured to be taking part in the 2013 series.