Kidman, 40, has been replaced as the face of Chanel No. 5 by 29-year-old Audrey Tatou, who is best known for her Oscar-nominated title role in Amelie.
The pregnant actress has been associated with the fragrance since 2004, when she was directed by Baz Luhrmann in an extravagant three-minute commercial.
The production, which reunited the Australian Moulin Rouge! pair, is believed to be the most expensive commercial of all time at an estimated cost of $60 million.
Meanwhile, Tatou's forthcoming campaign will also serve as a filmset reunion, with Amelie director Jean-Pierre Jeunet calling the shots.
Kidman's Chanel axing is yet another setback in a testing time of her career.