Netflix has announced it is writing Danny Masterson out of TV show The Ranch, as the actor faces allegations of sexual assault.

Mr Masterson - best known for his role as Hyde in That '70s Show - has been under investigation by police in the US since earlier this year.

In a statement provided to US media outlets earlier this year, the LAPD said that three women had "come forward and disclosed that they were sexually assaulted by Masterson during the early 2000s".

The actor has been starring in the sitcom The Ranch with his That '70s Show co-star Ashton Kutcher.

While he is set to appear in the second half of season two - which will premiere later this month - Masterson will not appear in an already confirmed third season.

Netflix said: "After discussing with the producers, we've decided to write Danny Masterson off of The Ranch.

"Yesterday was his last day of work, and we'll make new episodes in 2018 without him."

In a statement provided to The Hollywood Reporter, Mr Masterson denied the allegations.

He wrote: “I am obviously very disappointed in Netflix’s decision to write my character off of The Ranch. From day one, I have denied the outrageous allegations against me.

"Law enforcement investigated these claims more than 15 years ago and determined them to be without merit. I have never been charged with a crime, let alone convicted of one."

He added: "In the current climate, it seems as if you are presumed guilty the moment you are accused. I understand and look forward to clearing my name once and for all." 

Netflix previously cut all ties with House of Cards star Kevin Spacey, who has faced allegations of inappropriate behaviour. 

It was confirmed this week that House of Cards will return for a shorter final season without Mr Spacey, with the last eight episodes of the flagship streaming show to focus on Robin Wright's character instead.