The PGA of America voted to terminate the agreement on Sunday.
US President Donald Trump, who owns the course, has been accused by Democrats and some Republicans of encouraging last Wednesday’s riot in Congress.
A representative for the Trump Organization said they were “incredibly disappointed” with the decision.
“It has become clear that conducting the PGA Championship at Trump Bedminster would be detrimental to the PGA of America brand and would put at risk the PGA’s ability to deliver our many programmes and sustain the longevity of our mission,” said PGA of America President Jim Richerson.
“It was a decision made to ensure the PGA of America and PGA professionals can continue to lead and grow our game for decades to come.”