The decision by the Blues board to ban the club's former co-owner follows allegations made once again by Gold the he was promised the role of honary chairman at St Andrews after he and David Sullivan sold the club to Carson Yeung last year - claims the the new board have vehemently denied.
A statement by Blues said Gold was "offered an opportunity to remain as vice-president [non-executive] upon his request, which he refused.
"All the current allegations are false and untrue and the club will keep all options open".
Gold admitted to being saddened by the decision but said that he will not be banning the Blues board from Upton Park when the teams meet in the reverse fixture next February.
"I was looking forward to attending the game at Birmingham City, seeing old friends and was more than happy to put my personal differences aside for the day and shake hands with Peter Pannu and the rest of the Birmingham board," he said.
"Despite this, I look forward to welcoming each member of the Birmingham City board to Upton Park when they visit us in February for the return fixture.
"I do not want this matter to overshadow or distract from what is a vital game for West Ham United."