Dave Small who was elected to Redditch Borough Council during the recent local elections has resigned from the council.
It comes after he was sacked from UKIP for allegedly making racist and homophobic comments online last year.
In a statement the council said:
“We can confirm that today, Dave Small resigned as councillor for the Church Hill ward with immediate effect.
The council will now publish a notice of casual vacancy requiring two local electors to call a by-election. Until that time the council is now made up of 17 Labour, nine Conservative, one UKIP and one Independent councillors.”
UKIP has sacked one of its newly elected councillors in Redditch less than a week since the party made sweeping gains in the local elections, over claims the councillor made racist and homophonic comments on the internet.
Dave Small was elected to Redditch Borough Council last Thursday, where he won a seat in the Church Hill ward, topping the poll with 665 votes.
However, allegations emerged over the weekend Mr Small had referred to gay people as "perverts", and expressed opposition to same sex marriage.
He also predicted that "thousands more scroungers" would soon arrive in the UK from Mali as a result of a range of Coalition Government policies.
Tonight an UKIP official said:
"He [Mr Small] has now been expelled for clearly bringing the party into disrepute"
Dave Small who was elected to Redditch Borough Council in Thursday's elections, will now be investigated amid claims he posted racist and homophobic remarks on social media.
Mr Small won his seat in the Church Hill ward, topping the poll with 665 votes.
A Ukip spokesman said: "Dave Small has been suspended with immediate effect, pending a disciplinary hearing to determine the final outcome."
It was reported at the weekend that in February 2013, Mr Small referred to gay people as "perverts" and expressed opposition to gay people being allowed to marry.
It is also alleged that he said that "thousends mor scroungers" would soon arrive in the UK as a result of a range of coalition government policies.
Dave Small, a UKIP councillor in Redditch, has been "suspended with immediate effect pending a disciplinary hearing to determine the final outcome" according to a UKIP spokesperson.
It comes after he referred to Romanians as 'scroungers' and gay people as 'perverts'.
In the comments posted on Facebook last year Mr Small also attacked the broadcaster Clare Balding and the singer Elton John.
He was elected to Redditch Borough Council last Friday.
Ukip have selected East Midlands MEP Roger Helmer to run in the Newark by-election triggered by the recent resignation of Tory MP Patrick Mercer.
Mr Helmer, who defected from the Conservatives in 2012, has come under fire for remarks about homosexuality.
He has said that some people find same-sex relationships "distasteful, if not viscerally repugnant".
Ukip leader Nigel Farage also rebuked him for writing a blog that appeared to draw comparison between same-sex marriage and incest.
However Mr Helmer has insisted he is "liberal and tolerant" about homosexuality and has "no interest in telling consenting adults what they may or may not do".
Dudley's Lenny Henry has thanked his fans for their support, after a UKIP candidate tweeted that he should emigrate to a "black country".
William Henwood, who is standing in a council election, made the comment in response to a speech by the actor and comedian that said ethnic minorities were under-represented on British television.
Anna Soubry has apologised after saying Ukip leader Nigel Farage "looks like somebody has put their finger up his bottom".
The defence minister dismissed her comment, made in the closing seconds of BBC One's Andrew Marr Show, as a "light-hearted remark".
Comedian Rory Bremner, whose impression of Nigel Farage prompted the comment, asked Ms Soubry: "Are you allowed to say that?"
Mr Farage later said he was "astonished" by the "foul-mouthed attack" and insisted the minister had "stooped to the levels of crudity that any politician would spend a lifetime apologising for".
East Midlands MEP Roger Helmer has commented on the situation regarding his West Midlands counterpart, Mike Nattrass.
Helmer believes the departure of Nattrass from UKIP following the decision not to select him as a candidate in the next European Election will not have any longer term significance for the party.
East Midlands politician Roger Helmer has spoken of his excitement at the progress of his party.
The MEP believes UKIP are doing well in opinion polls, and are determined to seize their opportunity to rise up alongside other parties.
Three months ago, the UK Independence Party shocked the political establishment, winning hundreds of council seats in local elections across the country.
The biggest shock came in Lincolnshire where they gained sixteen seats to became the main opposition. Now, exactly a hundred days since that breakthrough, our correspondent Gareth Owen has visited UKIP's new stronghold around Skegness to asses their impact.