Coote, 42, was suspended on 11 November pending a full investigation after a video allegedly showing him making derogatory comments about Liverpool and the club’s former manager Jurgen Klopp was circulated on social media.
A further investigation was opened two days later after the Sun published photos it says were taken during this summer’s European Championship, alleging that they appear to show Coote sniffing a white powder through a rolled up US bank note.
The PGMOL said Coote’s actions made his position “untenable”.
Neither the pictures nor the video have been verified independently by the BBC.
“David Coote’s actions were found to be in serious breach of the provisions of his employment contract,” the PGMOL said.
“Supporting David Coote continues to be important to us and we remain committed to his welfare.”
Coote has the right to appeal the decision to terminate his employment.
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