The 'Transformers' actor came onto the project in February, just two weeks after he said he was retiring from all public life because of "attacks against his artistic integrity", said The Hollywood Reporter.
The 27-year-old actor's withdrawal from the movie comes after a bizarre few months that included skywriting, a public performance-art exhibit and wearing a paper bag on his head.
Reasons for LaBeouf's exit are unclear, but sources say it was an amicable parting.
'Rock the Kasbah' follows the journey of Richie Vance, an ex-rock manager who takes his last remaining client on a USO tour of Afghanistan.
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