Host Tess Daley first revealed that the magician and his professional partner Ola Jordan, who received the lowest score from the judges on last night's show, had finished in the bottom two after the public vote.
They were then joined in the firing line by Destiny's Child star Michelle Williams and partner Brendan Cole, before Daley revealed Daniels's fate.
After discovering that he had finished in the bottom two, Daniels admitted to Claudia Winkleman that he agreed with the result of the vote and wanted all of his fellow contestants to stay at his expense.
"I suppose I should feel different, but in show business you spend your life saying goodbye and I don't know of anybody in this group better qualified to go than me. I think they're great, I love them all and I would rather I went than anybody else."
Daniels remained in high spirits after his elimination had been announced, jokingly telling Jordan: "You're welcome round any time. The wife's going away tonight."
Tina O'Brien and partner Jared Murillo were absent from tonight's result show, after the Coronation Street star contracted chicken pox earlier this week.