The AFP and dpa news agencies quoted a statement from the owner of the "France Soir" newspaper, Raymond Lakah, as saying Managing Director Jacques Lefrance was removed from his post to demonstrate respect for the "intimate beliefs" of every individual.
The owner's statement said the newspaper expressed regret over the incident to the Muslim community and all people who were shocked by the publication of the Muhammad caricatures.
The newspaper says it published the cartoons to defend freedom of expression in a democratic and secular society.
The cartoons, which first appeared in a Danish newspaper, have triggered protests from the governments of Muslim countries and other organizations. Islam forbids images of the Prophet, and Muslims say the cartoons are an insult.
In addition to France and Denmark, the caricatures have also been reproduced in publications in Norway, Germany, Italy, and Spain.
(AFP, dpa)