Osbourne, 30, joined the show as a panelist in 2011. She co-hosted with comedienne Joan Rivers. Osbourne said she would quit the TV series after her colleague on the show, Rancic made a 'racist' comment on actress Coleman's oscar dress.
"Kelly Osbourne is departing E!'s Fashion Police to pursue other opportunities, and we would like to thank her for her many contributions to the series over the past five years, during which time the show became a hit with viewers," read a network statement.
The show only returned in January after a long hiatus prompted by the death of Rivers. Kathy Griffin, a close friend of Rivers, has taken her place.