Mel Gibson has been dropped by William Morris Endeavor Entertainment.
Earlier this week, the agency's Patrick Whitesell informed the actor's representatives that he would no longer be represented by the agency.
Gibson's longtime agent, Ed Limato, died July 3, and a funeral will take place in New York next week.
William Morris Endeavor partner Ari Emanuel had previously expressed hostility toward Gibson after the actor made anti-Semitic remarks and made remarks implying skepticism about the Holocaust.
An agency source said the only reason the agency had represented Gibson in the first place was his association with Limato. "Mel was really important to Ed," an agency source said. "He was with him for 32 years and I think Ed saw him as a son." But he added, "The world knows how Ari feels and he has never changed that opinion."
Gibson's troubles have only increased in recent weeks with allegations of bigoted tirades and reports that he is under investigation for assaulting his ex-girlfriend. Several studio executives have said in the wake of these disclosures that they consider the troubled actor too untouchable in the industry.
"I'd rather get engaged to Lindsay Lohan than have anything to do with him," one studio chief said.
A spokesman for Gibson could not be reached for comment.