The PGA of America voted to terminate the agreement on Sunday.
A representative for the Trump Organization said they were “incredibly disappointed” with the decision.
“It has become clear that conducting the PGA Championship at Trump Bedminster would be detrimental to the PGA of America brand and would put at risk the PGA’s ability to deliver our many programmes and sustain the longevity of our mission,” said PGA of America President Jim Richerson.
“It was a decision made to ensure the PGA of America and PGA professionals can continue to lead and grow our game for decades to come.”
The course in New Jersey, one of 17 courses around the world owned by Trump, was due to host the major in May 2022.
Another of his properties, Trump Turnberry in Ayrshire, Scotland, has not been selected to host an Open Championship by the R&A since Trump bought the resort in 2014 – with the host venues now finalised up to 2024.
Turnberry’s Ailsa course has hosted The Open on four occasions since first staging the championship in 1977, most recently when Stewart Cink won in 2009.
R&A chief executive Martin Slumbers said there were “no plans” to stage any of its championships at Turnberry and that the governing body would “not do so in the foreseeable future”.
“We will not return until we are convinced that the focus will be on the championship, the players and the course itself and we do not believe that is achievable in the current circumstances,” Slumbers said.
The PGA of America is now searching for a replacement host for one of the game’s biggest four men’s individual events.
“We have had a beautiful partnership with the PGA of America,” Trump’s representative added.
“This is a breach of a binding contract and they have no right to terminate the agreement.”