Jang Sung-taek had committed “criminal acts”, according to the state-run KCNA news agency.
Kim Jong-un’s uncle was seen as an economic reformer and regularly handled talks with China, Pyongyang’s only major ally.
Jang Sung-taek’s removal is the biggest upheaval in North Korea’s leadership since Kim Jong-un succeeded his father, analysts say.
Two of his close aides have been executed for corruption, according to earlier South Korean reports.
KCNA said the decision had come after a meeting of the politburo of the ruling Workers’ Party.
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