Skrein was roped in to play Major Ben Daimiom which was an Asian character in the "Hellboy" graphic novels.
The "Deadpool" actor released a statement on his social media accounts explaining his decision.
"It is clear that representing this character in a culturally accurate way holds significance for people, and that to neglect this responsibility would continue a worrying tendency to obscure ethnic minority stories and voices in the Arts. I feel it is important to honour and respect that. Therefore I have decided to step down so the role can be cast appropriately.
Skrein's casting follows recent controversies in which white actors have been set for roles originally portrayed by people of Asian descent.
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Scarlett Johansson's casting as a Japanese human-cyborg in "Ghost in the Shell" caused an uproar earlier this year, as did Tilda Swinton's role as the Ancient One in "Doctor Strange" - a character depicted as an Asian male in the comic book, reported Variety.
The creator of the "Hellboy" comic book, Mike Mignola, thanked Skrein on Twitter. "Very nicely done," he added.
David Harbour is playing the titular role in "Hellboy." Neil Marshall is directing the movie, which also features Ian McShane and Milla Jovovich.
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