The announcement comes as Michigan State prepares to play Michigan Thursday and attempts to overcome two straight conference losses to Illinois and Purdue, The Detroit News reported.
"Unfortunately, Korie Lucious displayed conduct detrimental to the program," Coach Tom Izzo said in a statement. "My focus is on this team for the remainder of the season."
Lucious expressed regret at the situation, but would not discuss what exactly led to his being dropped from the team, which fell out of the Top 25 coaches' rankings this week.
"I didn't live up to the standards of the program," Lucious said. "Unfortunately, I let my teammates, my coaches, and myself down, and wish them the best for the rest of the season."
The hero of last season's NCAA Tournament when his 3-pointer at the buzzer beat Maryland in the second round, Lucious has been struggling this season, averaging just 6.5 points per game.
His dismissal is not the first disciplinary action he has faced.
Lucious was forced to sit out the first exhibition game this season and the season-opener against Eastern Michigan after he was arrested Aug. 30 on a charge of driving while intoxicated.
He pleaded guilty to a misdemeanor reckless driving charge.