Olbermann hosted the political commentary programme Countdown with Keith Olbermann on MSNBC for four years, until he was fired by the network after what he described as "tenuous" final years.
The 53-year-old then relaunched the programme in June 2011 on Current TV, a progressive network created by former Vice President Al Gore.
Though he had a five-year contract, the network cancelled Olbermann's show yesterday (March 31), replacing it with a new show anchored by former New York governor Eliot Spitzer.
Olbermann tweeted in response to the axe: "I'd like to apologise to my viewers and my staff for the failure of Current TV."
Olbermann is now set to address the situation with David Letterman this Tuesday (April 3) on his late night talk show, having made a similar visit to Letterman's show last year after his departure from MSNBC.
Watch Keith Olbermann in last year's Late Show with David Letterman appearance below: