The promotion has been scrapped after the singer condemned the "damaging" deal.
The "Since U Been Gone" singer has been under pressure to cancel her April 29 show in Jakarta after it emerged that cigarette company Diarum had splashed their LA Lights brand logo all over posters advertising the concert.
Clarkson refused to ax the gig, insisting her fans should not be penalised for the oversight, and claimed she was furious that such a deal had been done without her knowledge.
Now bosses at the tobacco company have agreed to scrap the sponsorship ahead of the concert.