In a release first obtained by FOXNews.com, K2 Productions, the independent producers of the Miss California USA pageant, under license from Miss Universe, cited continued breach of contract issues as the reason for Prejean's firing.
"This was a decision based solely on contract violations," Keith Lewis, executive director of K2 Productions, said in the release. "After our press conference in New York we had hoped we would be able to forge a better working relationship. However, since that time it has become abundantly clear that Carrie has no desire to fulfill her obligations under our contract and work together.”
EXCLUSIVE: Prejean's Emails to Pageant Director Show Escalating Tensions
TRANSCRIPT: E-mails Between Carrie Prejean and Keith Lewis
PHOTOS: Click here for photos of Carrie Prejean.
Prejean came under fire for her answer to a question about gay marriage two months ago in the Trump-owned Miss USA pageant, in which she was the runner-up. After the pageant, Prejean was continuously attacked as she defended her belief that gays and lesbians should not be given the right to marry in California. She became embroiled in more controversy when racy pictures of her were published that some construed as violations of her Miss California contract.
Trump came to her defense in a May 12 press conference attended by Prejean and Keith Lewis, calling her answer to the question "honest" and saying "we have determined ... that the pictures taken are fine." He allowed her to continue on as Miss California.
But it was Trump who gave the final OK to fire her, FOXNews.com learned.
"I told Carrie she needed to get back to work and honor her contract with the Miss California Organization and I gave her the opportunity to do so," Trump said in the same release. "Unfortunately it just doesn’t look like it is going to happen and I offered Keith my full support in making this decision."
Representatives for Donald Trump referred to the press release when asked for comment. Prejean did not respond to FOXNews.com's repeated requests for comment, but told TMZ.com that she was shocked by her dismissal.
"They don't agree with the stance that I took [on Proposition 8]," she told the entertainment news site. "They don't like me. From day one they wanted me out and they got what they wanted."
Prejean also said that Keith Lewis had wanted her to pose semi-nude for Playboy for $140,000 and to star on the reality show "I'm A Celebrity... Get Me Out of Here!" but that she had declined both offers.
Lewis told FOXNews.com that he did not to ask her to take the jobs, but was simply following her explicit request to be notified of all offers. FOXNews.com obtained an email written by Prejean to Lewis last Friday which stated: "I expect you to be forwarding me ALL email requests and interview requests to me. I know how you are and its not right if you are selecting things for me."
Prejean is not without supporters, however. The National Organization for Marriage, a group that opposes gay marriage, released a statement slamming Trump and the Miss California pageant.
"This cover story about a contract dispute doesn’t pass the smell test. Americans aren’t fooled that easily. God knows, and we know, the truth about Carrie: She’s a young woman of great beauty who chose truth over the glittering tiara that Hollywood offers,” said Brian Brown, Executive Director for NOM. “Of course they will try to punish her, but we know she will be fine in the end, because her values are in the right place.”
First runner-up Tami Farrell is slated to assume the role and responsibilities of Miss California USA. Additionally, the Miss Universe Organization will make the reigning Miss USA, Kristen Dalton, and Miss Universe, Dayana Mendoza, available to K2 Productions to fulfill appearance requests that were declined by Prejean.
According to a source, Prejean has aspirations to write a book and pursue other opportunities, which she will be able to do now that she has been released from her duties as Miss California.
Hollie McKay has been a FoxNews.com staff reporter since 2007. She has reported extensively from the Middle East on the rise and fall of terrorist groups such as ISIS in Iraq. Follow her on twitter at @holliesmckay