Blair's dismissal comes a day after she was said to have criticized Sheen's work ethic and demeanor on the set of Anger Management, to which Sheen allegedly responded by giving the show an ultimatum to fire her or he would leave the show.
Deadline reports that Sheen, who is also an executive producer of the FX comedy, purportedly fired Blair over an expletive-laced text message.
Blair played the role of Sheen's therapist and friend with benefits "Dr. Kate Wales" on the series, which is currently on the tail end of its second season. Last August, the show was picked up by FX for 90 episodes, 30 of which have been produced.
Multiple reports speculate that Blair's role on the show will be filled by adding a new female regular.