"It goes against our goal of having a welcoming and inclusive environment," the racing series writes in a statement.
The flag of the Confederate States of America has been a common feature on the Nascar runways, especially in the southern United States.
The decision comes after the extensive protest actions after a police killed Black man George Floyd. African-American Nascar driver Darrell Wallace said in conjunction with Sunday's race that he wanted the Southern State flag removed from the races.
"No one should feel uncomfortable when they come to a Nascar race," he said.
CLIP: Manifestation before the Nascar race
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Bubba Wallace, right, ahead of the Nascar race in Georgia. Photo: TT