Sale sack wing over 'brotherly love'
Arscott, who used to play for Bristol, had been suspended since January 4 - after suspicions arose over whether he and his brother had discussed strategy when they met up on New Year's Eve.
Bristol recorded their first win of the season the following day, defeating Sale 24-23.
"Sale Sharks have today [Thursday] terminated the contract of Tom Arscott, with immediate effect, following a disciplinary investigation and hearing," said Sale's Chief Executive Jon Dorsett in a statement.
"No further comment will be made in accordance with the club's disciplinary procedure."
Bristol's coaching staff have denied receiving any information after the brothers met, but the Rugby Football Union are investigating the matter.
Neither of the Arscott brothers played in the match.
Tom was not included in Sale's 23-man squad, while Luke was an unused replacement.
Agence France-Presse