The association said it had received a resignation letter from Bin Hammam and that he "will never be active in organised football again".
Bin Hammam, a former executive committee member, had been fighting a life ban imposed by FIFA following allegations that he offered bribes to voters when running against incumbent Sepp Blatter in the governing body's presidential election, Sky News reports.
He had also been president of the Asian Football Confederation (AFC).
According to the report, FIFA said the life ban is a result of the final report from the chairman of its ethics committee, Michael J Garcia.
"In view of the fact that under the new Fifa Code of Ethics, the Fifa Ethics Committee remains competent to render a decision even if a person resigns, the Adjudicatory Chamber decided to ban Mohamed bin Hammam from all football-related activity for life," a statement by FIFA said.
"The report showed repeated violations of Article 19 (Conflict of Interest) of the FIFA Code of Ethics of Mohamed bin Hammam during his terms as AFC President and as member of the FIFA Executive Committee in the years 2008 to 2011, which justified a life-long ban from all football-related activity," it added.
Bin Hammam, 63, was first banned by FIFA in July 2011 over the bribery allegations, the report said. (ANI )