The Swede, who agreed to become Europe's Ryder Cup captain back in March, confirmed he has linked-up with the newly-formed breakaway event.
The news was already apparent after Ryder Cup Europe issued a notice on Wednesday afternoon, stating they decided to strip the former Open Champion of his captaincy role.
Stenson hoped to continue in the position while playing in LIV Golf events, but a meeting with officials made it clear that his desires did not meet the acceptable criteria.
"Unfortunately my decision to play in LIV events has triggered Ryder Cup Europe to communicate that it is not possible for me to continue in my role as Ryder Cup captain," he wrote in a statement, posted on his social media channels.
"This is despite me making specific arrangements with LIV golf, who have been supportive of my role as captain, to ensure I could fulfil the obligations of the captaincy.
"While I disagree with this decision, for now it is a decision that I accept.
"I am hugely disappointed to not be allowed to continue in my role but wish you all the best in your ongoing preparations."
Stenson's use of the words "for now" would suggest he is open to interpretation of the rules.
Fellow LIV rebels, led by such players as Ian Poulter, successfully challenged in court a decision by the DP World Tour to ban them from competing in the Scottish Open earlier in July.
While a decision on a replacement is yet to be made, the European team have a number of options to their disposal, including former Ryder Cup winning captain, Thomas Bjorn.