Paceman Matt Coles and allrounder Ben Stokes have been booted off the tour after ignoring written warnings about their "match preparation and recovery".
The Lions have lost all five matches on tour, including the first two of their five-game series against Australia A, as players in both teams eye this year's Ashes series.
The visitors lost by a massive 122 runs at Bellerive Oval on Monday to go 2-0 down and play match three at the same venue on Friday.
A spokesperson for the side refused to elaborate on the incidents involving Coles and Stokes, while no representative was made available to the media on Thursday.
A statement said the players had fronted disciplinary hearings for "unprofessional conduct" after previously being warned when they "contravened their conduct obligations".
"On a very challenging tour to Australia, both Matt and Ben have ignored the instructions given to them around their match preparation and recovery and, following previous warnings, it is regrettable that it has been necessary to terminate their involvement in the tour," England performance director David Parsons said in the statement.
"Both are very talented individuals and it is hoped that, with the support of the ECB and their respective counties, they will take positive steps to give themselves the very best chance of fulfilling their potential."
Coles is a 22-year-old seamer from Kent who took 0-53 in the Lions' seven-wicket loss to Australia A in game one last Friday.
Stokes, 21, is considered a major talent and has already played five one-day internationals for England, averaging 10 with the bat, and two Twenty20 internationals.
He made 13no and took 1-40 in game one at Bellerive.
Neither player appeared in game two.
Both offered apologies in the team's statement.
No replacements will be flown in with game three to be followed by matches at the SCG on February 25 and March 1.
England's top side play the final match of their ODI series against New Zealand in Auckland on Saturday before a three-Test series.
The Ashes series in the UK begins at Trent Bridge, Nottingham on July 10.