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Published 18:40 4 Jul 2017 BST
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Sagan was initially docked 30 seconds and 80 points in the Green Jersey competition. However, the jury went on to analyse the video footage for several hours before announcing his disqualification.
"We've decided to disqualify Peter Sagan from the Tour de France 2017," an official from the race jury announced.
The stage was won by French man Arnaud Demare but was marred by this incident.
Fellow sprinters John Degenkolb and Ben Swift were brought down by the flattened Cavendish in the dramatic climax.
The footage doesn't do Sagan any favours, as he visibly appears to swerve towards Cavendish who was perilously close to the banners on the side of the road.
https://twitter.com/LeTour/status/882256997734899713?s=09
Sagan is a very divisive figure in cycling and it's not the first time he has been involved in controversy.
Exhibit A.
Peter, it's not very clever to pinch a podium girl's butt.
https://www.youtube.com/watch?v=6g2qZ0GhLNs
Exhibit B.
He had the wedding of all weddings.
https://twitter.com/karlwhitney/status/882247259877986304
He crossed the line on Tuesday, that's for sure.
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