Mr Yeo, who was recently reinstated as chairman of the influential Commons Energy Committee after being cleared of lobbying allegations, is said to be “considering his options” following the decision by the South Suffolk Conservative association.
According to the Ipswich Star, the local party issued a statement saying: “The executive council of the South Suffolk Conservative Association met on the evening of Friday, November 29 and voted not to re-adopt Tim Yeo for the 2015 general election.
“Mr Yeo is now considering his position and will advise the executive council of his intended course of action.”
Mr Yeo, 68, who served as environment minister in John Major’s government, has represented the constituency for three decades, and won an 8,600 majority in 2010.
However, the cross-party standards committee found he had done nothing wrong.
Shadow Cabinet Office minister Jon Ashworth said: “Tim Yeo’s deselection is another sign that under David Cameron the Conservative Party is reverting to type, with no place for those who thought he meant it when he said ‘Vote blue, go green’.
“Just this week one Tory with modernising credentials has been deselected and another has quit, and David Cameron is trying to water down a green levy he introduced and even boasted about.
“It’s more evidence of the death of Tory modernisation. David Cameron’s party is becoming narrower and less open and moving further from the centre ground.”