Hartlepool Labour stalwart Keith Fisher was notified he had been expelled from the party for breaching rules.
It follows a row last year when Mr Fisher and Labour councillors Robbie Payne and Ray Waller fell out with fellow party members over comments attributed to them by a national newspaper.
Mr Fisher, pictured top right, was quoted as implying Hartlepool MP Iain Wright could be deselected before this year's General Election.
The newspaper report was published in the run-up to last September's by-election.
Members of the St Hilda's branch of the Constituency Labour Party complained about the trio, claiming the comments showed a "treacherous undercurrent".
An investigation was launched and a panel of the party's National Constitutional Committee appointed to hear the case.
Mr Fisher confirmed he did not attend the hearing, but had been notified in writing he had been expelled.
Today he said the "debacle" began when he objected to the way Mr Wright was selected for September's by-election.
He said 28 party members had expressed an interest in running for Hartlepool MP - some of them from the town.
Mr Fisher told the Mail: "The national executive short-listed four of them and only one was from Hartlepool.
"All local members had already indicated they wanted a local candidate and thereby a local MP. I personally had already appeared on national television saying just that."
Mr Fisher said Labour chiefs, by denying Hartlepool party members any other local options, effectively appointed Mr Wright, adding: "That cannot be democratic and I said so very openly."
He said another complaint against him had been his appearance on a Conservative Party leaflet shaking hands with the Tory candidate.
But he added he only did so in his capacity as a member of the town's Save Our Hospital campaign - which the Tory candidate was supporting.
He said he did not attend the disciplinary hearing because he had not been given disclosure of all allegations.
Coun Waller today confirmed he received a warning over his comments last year.
He said: "We have drawn a line under what has happened and I have apologized for any embarrassment my comments may have caused."
Coun Payne could not be contacted to comment.
Mr Wright, pictured above, said: "These things happened a year ago. I have moved on. It is an internal party matter that I have played no part in."
A Labour party spokeswoman said Mr Fisher was expelled because of his appearance in Tory leaflets during the by-election.
She added: "He has never offered any explanation to the national party for why he was on the leaflets."
"He was given the opportunity to come along and say that to the party committee and he chose not to."