The controversy surrounding former radio host Scott Mills, 53, is the latest involving a high-profile presenter to roil the publicly funded broadcaster.
London’s Metropolitan Police said this week that it questioned Mills in 2018 over allegations of “serious sexual offences” against a boy under the age of 16.
The case was opened in 2016 and the offences were alleged to have taken place between 1997 and 2000, when Mills was in his 20s.
“Prosecutors decided there was not enough evidence to bring charges and the investigation was closed in 2019,” police said.
The BBC admitted that it was “made aware” in 2017 of the police probe and was “doing more work to understand the detail of what was known”.
“What we can confirm is that in recent weeks, we obtained new information relating to Scott and we spoke directly with him,” a spokesman said.
“As a result, the BBC acted decisively in line with our culture and values and terminated his contracts on Friday 27 March,” spokesman said.
The BBC has faced growing pressure in recent days to explain the Radio 2 DJ’s sudden departure and whether it had known about the probe.
“The BBC has made a significant commitment to improve its culture, processes and standards,” the spokesman added.
“Last year, following an independent culture review, we set out the behavioural expectations for everyone who works with or for the BBC and we were clear action would be taken if these were not met.”
Mills has not yet commented publicly on his departure, which was first reported by the Daily Mirror tabloid.
The BBC has been rocked by multiple sexual scandals involving top personalities in recent years, including former news anchor Huw Edwards and ex-presenter Jimmy Savile.
Last year, former BBC Radio 1 DJ Tim Westwood pleaded not guilty to counts of rape and sexual assault alleged to have taken place between 1983 and 2016.
Comedian Russell Brand, who presented a BBC Radio 2 show between 2006 and 2008, is on trial in London accused of sexual offences.
Former Google executive Matt Brittin is to become BBC director-general in May, succeeding Tim Davie who resigned in November over the editing of a documentary about US president Donald Trump.