But what will he do now, and what will happen to Top Gear? We answer your questions about what the future holds for one of the BBC's best loved programmes and its presenter.
What next for Jeremy Clarkson?
It is thought Clarkson may sign for American network Netflix, which is becoming increasingly popular with global TV audiences.
What next for Top Gear?
Despite deciding to axe the show's star presenter, the BBC is planning to continue broadcasting Top Gear on BBC2.
The decision to continue with the programme will still be regarded as something of a risk for the BBC.
For many Top Gear fans it was Clarkson’s irreverent and near the knuckle brand of humour that helped make the show so popular.
Who will be the new presenter?
According to well-placed sources, senior executives at the Corporation have been wooing Radio 2 Breakfast Show host and self-confessed ‘petrol-head’, Chris Evans in the hope he will agree to take over.
Evans, 48, who has one of the most prestigious car collections in Britain, including a £12 million 1963 Ferrari 250GTO, had previously ruled himself out of the running, but bosses are keen to persuade him to sign up.
With Evans already a popular and established broadcaster, who has appeared on Top Gear on a number of occasions, his appointment would be seen as a safe bet.
What next for James May and Richard Hammond?
It is not clear whether Clarkson’s co presenters James May and Richard Hammond will remain with the programme or will join Clarkson on any new ventures.
What did the BBC report say about the ‘fracas’?
According to a report compiled by BBC Scotland boss Ken MacQuarrie and submitted at the weekend, Clarkson verbally abused producer Oisin Tymon for 20 minutes, before physically attacking for at least 30 seconds.
The outburst came after Clarkson, who is one of the BBC’s best paid stars, was informed he could not have steak and chips after a day’s filming because the hotel where they were staying had stop serving hot food.
The ‘fracas’ as it was initially described by the BBC took place at the Simonstone Hall hotel near Hawes in North Yorkshire when Clarkson was informed that there was no hot food available after a day’s filming.
What will Lord Hall say on Wednesday?
It is understood Lord Hall will defend Clarkson’s controversial and politically incorrect style of broadcasting and say there is a place at the Corporation for that style of presenting.
Despite feeling he has been left with no alternative but to sack Clarkson, Lord Hall is expected to thank him for helping to build Top Gear into one of the Corporation’s crown jewels and praise him as a “brilliant broadcaster”.
Clarkson, 54, will be thanked for his work on the hugely popular motoring show, but will be told such behaviour cannot be tolerated at the Corporation.
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