Australian rower Josh Booth will be sent home from the Olympics for damaging two shop windows near the Eton Dorney lake following a night out drinking, the Australian Olympic Committee has said.
"He will be sent home for breaching the athlete participation agreement," a spokesman said, adding the athlete was still in the Olympic village.
Booth earlier apologised and agreed to pay reparation of about £1,400 for the damage, British police said, though he avoided any charge.
The 21-year-old was detained by police early on Thursday after being called to an incident in Egham, near the Olympic rowing venue west of London.
Booth was in the men's eight that finished sixth in their final on Wednesday, and said the disappointment of the result had been hard for him to take.
"I am deeply ashamed of my actions on Wednesday night," he told a news conference on Friday.
"The damage I caused was not motivated by any malicious intent to destroy, but was a rather emotional outburst and an inappropriate expression of my disappointment and frustration with our result in a hard-fought final."
Surrey Police said on Friday that Booth had admitted his role in the incident, apologised for his behaviour and offered to pay for the damage to the windows.
"In cases where offenders admit their criminal behaviour, are prepared to accept responsibility and face the consequences, some offences can be resolved without resorting to criminal charges," police said in a statement.
"Following an offer of reparations to cover the costs of repairs by Mr Booth, the victims are satisfied that the matter can be dealt with without the need for criminal charges."
Australian deputy chef de mission Chris Fydler had told reporters earlier the incident had been an embarrassing one for the team.
"We expect a much higher standard of behaviour from all of our athletes," Fydler told a news conference.
"This has been an embarrassing situation not just for rowing but for us as well... and we will certainly be reminding section managers, as various sports start to complete, what level of behaviour is expected of their athletes."