Friday's announcement from coach Mark Richt opens the way for incoming freshman Isaiah Crowell to begin his career as the starting tailback.
Washaun Ealey, who led Georgia in rushing last season, left school in May after two suspensions for disciplinary reasons.
King was suspended for two games last season after failing to appear in court to deal with a speeding ticket. He missed the AutoZone Liberty Bowl because of academic issues.
King rushed for 430 yards with two touchdowns on 80 carries in 2010. Ealey led the team with 811 yards rushing and 11 touchdowns last season.
Richt says King's "unfortunate" situation provides opportunities "for others to step up."