Former mayor of Luton, Tahir Khan, had been Labour's choice in the upcoming Bedfordshire Police and Crime Commissioner (PCC) election - due to take place in 2021.
However, Mr Khan, 53, faced disciplinary proceedings over an alleged antisemitic social media post.
He is understood to be currently suspended from the party and unable to represent them.
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A new selection process for a Labour PCC candidate is set to be completed in around a month's time.
A Labour spokesman said: "The Labour Party takes all complaints of antisemitism extremely seriously and they are fully investigated in line with our rules and procedures, and any appropriate disciplinary action is taken."
Mr Khan was previously a long-serving councillor for Biscot ward and also served as mayor of Luton in 2016-17.
He was deselected from the council along with five other long-standing councillors in June 2018 (see story here) amid in-fighting within the local Labour Party.
The PCC election was originally scheduled for May this year, but was deferred to next year due to the Covid-19 pandemic.
Mr Khan has been approached by Luton News for comment.