Police Chief Huseyin Capkin confirmed to journalists that he had been removed from his post and recalled to the capital, Ankara.
The government has dismissed dozens of other police officials in Ankara and Istanbul including some who oversaw the police raids and investigation raising criticism from opposition parties that Erdogan's Islamic-based government was attempting to cover up a scandal.
Erdogan insists the probe is a conspiracy to harm his government's reputation and has promised to go after the forces he says have instigated the plot. His government, now into its 11th year in power, has won three successive elections on the strength of Turkey's relatively robust economy and partly by portraying a clean image.
Turkey will hold local elections in March, which are being seen as a vote of confidence in the government.
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Many believe the corruption probe was instigated by a movement led by an influential US-based Turkish Muslim cleric, which once supported Erdogan's government but now appears to be in a dispute with the Turkish leader.
The movement is reported to have a strong influence within Turkey's police and judiciary.
The cleric, Fetullah Gulen, however has denied that he was behind the investigation targeting Erdogan's allies.