Sir Keir Starmer asked Mandelson to be withdrawn from the role, Foreign Office minister Stephen Doughty told MPs.
His departure comes just days after US lawmakers released a copy of a “birthday book” of notes given to Epstein in which Mandelson described him as his “best pal”.
Speaking to The Sun’s Harry Cole Saves The West programme on Wednesday, Mandelson previously described the words he used in his birthday message as “very embarrassing to see and read”.
When asked whether he had continued a business or personal relationship with Epstein after he was charged with criminal offences, he replied: “It was not a business relationship.”
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The “birthday book” also included a letter allegedly written by Donald Trump that he previously said did not exist.
Speaking at Prime Minister’s Questions on Wednesday 10 September, Starmer also said “due process was followed” during the appointment of Lord Mandelson to the position.
His death was ruled a suicide.
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