The move comes after Gallas spoke of unrest in the Arsenal camp on Thursday, including details of a bust-up during half-time in the recent 4-4 draw with Tottenham.
A number of former players have been quick to criticise Gallas for the outburst and it now appears as though Arsene Wenger has acted quickly to discipline the French defender.
It was initially understood that Gallas had been stripped of the captaincy, but reports later suggested that he may have offered to step down at a team meeting.
Gallas, who was handed the armband at the start of last season, will not travel with the rest of the squad ahead of Saturday’s game at Man City.
The latest development raises doubts about Gallas’ future with the club, just two years after he joined the Gunners from Chelsea.
Arsenal have yet to confirm the news but there is speculation that goalkeeper Manuel Almunia will lead out the side against City.
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