Coach Terry Allen would not identify the player because the case is still under investigation.
A second player involved has been placed on probation and was "one step from suspension from the team," Allen said.
According to police reports, the woman said two players approached her in the parking lot of a Lawrence nightspot, and one grabbed her around the waist, lifted her into the air and ignored her requests to leave her alone.
Holding her face down on the hood of a truck, the players fondled, spanked and taunted her, she told police.
The woman didn't immediately go to police, she said, because Allen promised to punish the players in an "appropriate way" if she did not press charges.
"The only punishment they got was they had to run stairs at the stadium one day," she said.
Allen later appeared before the Kansas athletic board and apologized for his handling of the complaint.
He said he suspended the player earlier this summer but did not announce the move until Thursday.
"After I suspended the player, he was dismissed from school for academic reasons and could have appealed for reinstatement," Allen said. "We made the decision, however, that we would not renew his scholarship."
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