FIA president Mohammed ben Sulayem announced a series of changes as a result of the inquiry into the controversial end to last year’s World Championship.
Masi failed to correctly apply the rules in a late safety car period and had a direct impact on the outcome of the title race.
Two men will now alternate in the role, while extra help will be provided to officials.
The new race directors will be Eduardo Freitas, who formerly performed the role in the World Endurance Championship, and Niels Wittich, who did so in the DTM German Touring Car Championship.
Masi will be “offered a new position within the FIA”, Ben Sulayem said.