Apart from Kaneria, the ECB also imposed a five-year ban on Westfield but he will be able to play in the final two years of his punishment.
"We regard Danish Kaneria as a grave danger to the game of cricket and we must take every appropriate step to protect our game from his corrupt activities," an ECB disciplinary committee said in a statement.
"Accordingly, we are unanimously of the view that the only appropriate sanction in relation to both charges is one of suspension for life and that is the sanction we impose.
"This means from today Danish Kaneria is suspended from any involvement in the playing, organisation or administration of any cricket under the jurisdiction of the ECB," the release added.
The ECB disciplinary panel has found Kaneria guilty of corruption in relation to the spot-fixing case, while Westfield was also charged with one offence under the ECB's regulations to which he pleaded guilty.
Both players were charged last month in the wake of Westfield's imprisonment. Kaneria was implicated in spot-fixing during Westfield's trial at London's Central Criminal Court but denied the allegations.
The disciplinary panel, which consisted of Gerard Elias QC, David Gabbitass and Jamie Dalrymple, concluded, "Danish Kaneria knowingly induced or encouraged Mervyn Westfield not to perform on his merits in the Durham match."
