Nadzeya Ostapchuk,31, of Belarus, was confirmed positive for metenolone, a banned substance which enhances performance, on Monday.
With her win at shot-putting a week previously, The Independent report that the Belarusian Olympic Committee are to return the athlete’s medal.
Two tests were done, one before and after the event, which reflected the use of the steroid metenolone.
"The International Olympic Committee (IOC) today announced that it has disqualified, withdrawn the medal from, and excluded Belarus's Nadzeya Ostapchuk (athletics, women's shot put) from the Games of the 30th Olympiad in London,” read an IOC statement.
"The athlete was first requested to provide a urine sample for a doping control on 5 August. She competed the next day in the women's shot put event, where she placed first, and was asked to provide a sample straight after her competition.
"Both samples indicated the presence of metenolone, which is classified as anabolic agent under the 2012 Prohibited List."
Stunned shot-putter Valerie Adams from New Zealand will take first place following this outcome.
"It is taking me some time to take this in," she told New Zealand TV network TVNZ.
"It is huge and I am absolutely thrilled of course. It makes me extraordinarily proud as a New Zealander.
"It is also encouraging for those athletes, like myself, who are proud to compete cleanly, that the system works and doping cheats are caught."
The silver medal will now go to Evgeniia Kolodko, of Russia, with Lijiao Gong from China taking bronze.
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