The Italian, who was initially given a pathetic two-race ban for his despicable attempt to slow down Stefan Manzi at the Misano Moto2 Grand Prix, will now miss the rest of the season.
Fenati, 22, has also been axed by the Snipers team and was also dropped from his 2019 contract with the Forward Racing/MV Agusta project.
The 10-time grand prix winner could now be forced to quit racing altogether after a meeting at the Fédération Internationale de Motocyclisme Headquarters in Switzerland.
A statement from FIM said: "Mr Fenati, accompanied by his legal representative, was received by FIM President Vito Ippolito and FIM Deputy CEO and Legal Director Mr Richard Perret.
"Mr Fenati was asked to explain in person his act on the track in Misano, which has given rise to many extreme reactions in the traditional media and on social media platforms.
"During the meeting, the FIM representatives emphasised the Federation's deep concern for the safety of all riders and other participants in motorcycling competitions.
"They also highlighted the importance it attaches to fair play in motorcycling sport.
"While acknowledging that riders, and in particular those who reach the highest level of the sport, are subject to many pressures both on and off the track, they reminded Mr Fenati of the profound influence high-level athletes can have on fans and young people and urged him to be mindful of his responsibility to set a positive example in future.
"Following the discussion with the rider and his representative, the FIM decided to withdraw Mr.Fenati's FIM licence until the end of the current calendar year.
"A new FIM licence for the 2019 season may be granted to him subject to the conditions laid down in the FIM Regulations."
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