Bannon returned to the organization a year ago after working in the West Wing; he helped to found the news outlet, and began serving as its executive chairman following the death of its first leader, Andrew Breitbart, in 2012. The president issued a scathing statement saying Bannon had "lost his mind" and he wanted nothing more to do with him.
Mr Bannon's final excommunication happened the day Mr Trump spoke with Democrats about the need for a "bill of love" to assist undocumented young people.
But he appears to have become increasingly isolated amid reports that he had lost the support of a major financial backer.
Bannon allies in recent days suggested that he had been stung by Wolff, that the White House had overreacted and that a reconciliation with Trump would come eventually. Others say he encouraged Breitbart to engage in nativism and racism.
Mr Bannon had served as executive chairman of Breitbart since 2012.
"Breitbart News has made a decision to end its relationship with Stephen K. Bannon, therefore he will no longer host on SiriusXM since our programming agreement is with Breitbart News", Sirius XM representatives announced in a statement.
Bannon mocked Trump's son-in-law, Jared Kushner, and Trump Jr.as being part of a "brain trust" and called a meeting they had with Russian attorney Natalia Veselnitskaya "treasonous" and "unpatriotic".
A statement published on the far-right news website tonight said Bannon and Breitbart "will work together on a smooth and orderly transition". The NYT is reporting that Bannon was forced from his perch by Breitbart benefactor and Trump donor Rebekah Mercer after he was unable to quell the discontent over his comments about Trump's family.
Nevertheless, Breitbart soared under Bannon, reaching 37 million unique readers a month before Trump upset Hillary Clinton to win the 2016 election.