The 6-foot-8 transfer from Chipola (Fla.) Junior College was supposed to add depth in the frontcourt. But he was suspended before the first exhibition game of the season by coach Andy Kennedy and never played in a game.
Kennedy announced Carter's dismissal Friday through a university statement.
Carter played in 16 games for Alabama during the 2010-11 season, averaging 1.4 points and 1.8 rebounds before transferring to Chipola.
Ole Miss (6-0) plays its first road game of the season against Middle Tennessee (6-2) on Saturday.