Seminoles coach Jimbo Fisher said Wednesday the offensive lineman would not be allowed back on the team.
Denson, 18, was arrested Tuesday on charges of illegal use of a credit card and petty theft, the Tallahassee Democrat reported Wednesday.
Denson, who was eligible for a medical redshirt, did not travel with the team for last season's VIZIO BCS National Championship and has not been with the team since December.
"I hope he does well in school for whatever his future was but he hasn't been with us since December and I hate it for him and hope everything comes the right way. Hate to see anybody do that but you can't make mistakes," Fisher said after FSU's first spring practice.
Asked if the charges closed the door on Denson returning to the Florida State team, Fisher answered, "Yes."
Earlier this month before the arrest, Fisher was noncommittal about Denson returning.
Florida State's Code of Conduct/Discipline policy states "absent extraordinary circumstances as determined by the administration, misdemeanor charges and subsequent discipline ... will be handled by the Head Coach."
Denson and a friend's use of the credit card led to an altercation in December between Denson and freshman running back Mario Pender.
Pender took a pair of Denson's shoes as "collateral," the Democrat reported earlier this month. When Denson and Pender agreed to meet so Pender could give Denson the shoes and Denson could repay him, an argument ensued and a friend of Denson's shot Pender's half-brother Tim Pruitt, who Pender sent to complete the exchange, the Democrat reported.
Tarron Addison, the shooter, was arrested on charges of attempted murder March 6.
Pender told police his credit card was charged three times Dec. 19 for a total of $501.36, the Democrat reported. A surveillance video from Champs shows Denson's friend Shaquille Walden pay for shoes using Pender's credit card as Denson stood beside him, the Democrat reported. Walden told police Denson gave him Pender's card, the Democrat reported.
Denson, a freshman in 2013, was injured much of the season.