The comic has fronted adverts for the company since 1997 with the catchphrase ‘It's not Terry's, it's mine.’
However, she will not feature in a new £3 million campaign, due to start in November.
Kraft Foods, owners of the Terry's, said it was ‘a difficult decision’ not to use the ‘hilarious and irreverent’ comedian.
The move prompted speculation over whether the brand chose not to be associated with someone of French’s build amid a national obesity crisis.
Terry's marketing manager Stephanie Lea said :‘We are grateful to Dawn for the major impact she has had on our advertising and for the value that she has added over the last ten years.
‘After such a long partnership we feel that the campaign has run its course and we are in the process of developing different work.
’It has been a difficult decision to end the partnership with Dawn and we would like to extend our sincere thanks and wish her continued success in her fabulous career.’
