In a statement released by the company, Rush said he would no longer be a part of production of "Twelfth Night", which is due to begin in four months.
"Due to my current circumstances and medical advice, I must withdraw from the upcoming project of 'Twelfth Night'. I do so with the greatest regret. I know that I would not be able to provide the necessary creative spirit and the professional stamina required for the project," Rush said.
"I am certain that Simon Phillips, the director, will deliver an outstanding production and I wish all involved the very best in its success," he added.
"MTC respects Geoffrey's decision and will be working immediately with Simon Phillips to cast the role in what will continue to be an exciting landmark work in the MTC season. Out of respect for Geoffrey's privacy we will be making no further comment on this matter. Casting announcements will be made in due course," Sheehy said.
Rush, 67, was last year accused of sexual misconduct and inappropriate behaviour in a news report in Australia's Daily Telegraph, which stated that Sydney Theatre Company received a complaint against the Oscar winner, who starred in its 'King Lear' adaptation in 2015.
In response, the actor is suing the publication for defamation over the series of articles.
The actor had vehemently denied the allegations and said that his conduct has always been beyond reproach.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)