Logo designer Kenjiro Sano admitted copying online material when questioned by organisers, Japanese media reported. A Belgian graphic artist had complained that his design was stolen.
In July Japan scrapped a controversial design for the new Olympic stadium.
"We have reached a conclusion that it would be only appropriate for us to drop the logo and develop a new emblem," Toshio Muto, director general of the Tokyo organising committee, told a news conference.
"At this point, we have decided that the logo cannot gain public support."
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