A spokesman for the show told Mirror Online: "Zara was informed of the news off camera this morning. She is now back in the villa and has chosen to remain in the show."
Show bosses made the decision to tell Zara that she had lost her title due to her behaviour in the villa, so she didn't face the prospect of being told by a new arrival.
Read more: Miss GB bosses insist Zara Holland was banned from having sex on Love Island, as she's stripped of title
The official statement read: “Following recent actions within ITV2 show 'Love Island' it is with deep regret that we, the Miss Great Britain Organisation, have to announce that Zara Holland has formally been de-crowned as Miss Great Britain."
"As an organisation we have not taken this decision lightly, we are close to all of our winners and wherever possibly stand by them during their rein. That said, we feel we have no choice but to make this decision under the circumstances.
Read more: Love Island's Zara Holland admits huge regret after night of sex with newcomer Alex Bowen
Read more: Love Island's Zara FINALLY gets steamy in the Hideaway with Vicky Pattison's ex Alex
"The feedback we have received from pageant insiders and members of the general public is such that we cannot promote Zara as a positive role model moving forward.
“We wholly understand that everyone makes mistakes, but Zara, as an ambassador for Miss Great Britain, simply did not uphold the responsibility expected of the title.”
In Wednesday night's show, Zara Holland finally found a match on the reality show .
Zara kissed a few frogs in the series but it seemed she had finally found her Prince Charming, in Alex.
Read more: Zara Holland strips naked for hot snaps
In scenes no one saw coming, she enjoyed a steamy night of passion with the newbie.
Zara’s evening of intimacy occurred after the public voted for her to enjoy a date of her choice with either Alex or fellow new boy James.
Zara chose Alex, who had spent most of the day flirting with fellow singleton Olivia.
But Zara's not alone - and there have been plenty more former Miss GB's and Miss England's stripped of their titles.
But sadly, others haven't been quite so successful.
