The PGA of America is pulling its Grand Slam of Golf from
The 36-hole event, scheduled for mid-October, features the winners of the season's four majors.
PGA officials issued their statement on Tuesday, a day after discussing the situation with Trump.
"The parties mutually agreed that it is in the best interest of all not to conduct the 2015 PGA Grand Slam of Golf at Trump National Los Angeles," the association stated. "The PGA of America is in the process of exploring options."
Trump has come under fire since making disparaging remarks about Mexicans during the kickoff for his campaign last month.
"They're bringing drugs. They're bringing crime. They're rapists," he said of Mexican immigrants, adding, "and some, I assume, are good people."
Macy's, NBC and Univision have since cut their ties with him.
The billionaire said in a statement Tuesday that he has "great respect" for the PGA. Earlier, he downplayed press reports about NASCAR moving a banquet from his Miami course and ESPN withdrawing a charity tournament from the Southern California venue.
"Really?" he asked. "What were the losses?"
Trump said he intends to keep NASCAR's deposit and rent the ballroom to another group. He predicted a similar scenario arising from the departure of the ESPY Celebrity Golf Classic, which was scheduled for July 14.
"I will now let people use the course on that day, receiving substantial additional greens fee income," he said. "Again, I get two fees instead of one."