Associate head coach Keith Urgo will take Chambers' place Sunday.
The Nittany Lions lost to Michigan 68-55, and Chambers was seen pushing freshman guard Myles Dread in the chest during a huddle midway through the first half.
"Coach Chambers and I have spoken about what occurred during the Michigan game, and he is very remorseful," athletic director Sandy Barbour said Friday in a statement. "His actions were unacceptable, which he recognized, and he apologized to Myles Dread last night and his family today. His actions do not reflect the values of Penn State and the expectations we set for our programs and must not occur again. Pat and I agree his actions were unacceptable, and he will be suspended for Sunday night's game vs. Wisconsin."
Chambers said in the postgame news conference that he apologized to Dread and he "will do it a different way next time." He reiterated that in Friday's announcement of his suspension.
"I apologized to Myles after the game, and I have spoken with his family," Chambers said in the release. "My actions were inappropriate; that's not what Penn State stands for or what I stand for. I told Myles I was sorry that it happened. Sandy and I have spoken and agreed there are some things I need to address. I've assured her this won't happen again and understand my actions last night come with consequences."
Penn State's loss to Michigan dropped the Nittany Lions to 7-7 on the season, 0-3 in the Big Ten.