The gymnast was found drunk and causing a scene outside the Olympic Village in Rio.
Dutch team ambassador Maurits Hendriks said:
“This has been a very difficult decision for us.”
“I think this is really terrible for Yuri, but such behaviour is unacceptable. It does not belong in the Olympics or any kind of sporting competition.”
After his exit, Yuri Van Gelder’s slot in the final – which he qualified last Saturday – will be filled in by France’s Danny Pinheiro Rodrigues. The final Gymnastics event will take place on Monday 15 August 2016.