The Birmingham Post (p4) reports that Phil Smith said he was he was deselected to be replaced by the deputy leader, Steve Holland, in the elections next May.
Mr Smith, who also sits on Staffordshire CC, said his own seat was one of the safest in the borough.
Describing himself as 'a moderate old Labour councillor with principles', he said all the procedures had been carried out by the book but his deselection showed the fraternal spirit of the party had been replaced by 'dog eat dog'.
Mr Holland said: 'This is private Labour party business. A list of candidates will be made available at the appropriate time. I don't want to say more than that.'