Jackie “O” Henderson has quit her lucrative radio show after an on-air spat sparked by her controversial co-star Kyle Sandilands, who has been stood down.

The decision was announced in a statement to the ASX late on Tuesday by KIIS FM’s parent company ARN.

It said Henderson would no longer present The Kyle and Jackie O Show because she “cannot continue to work” with Sandilands.

The pair was in the second year of a 10-year, $200 million contract — the most lucrative in Australian media.

Henderson’s resignation marks an end to her 25-year broadcast partnership with Sandilands.

ARN Media said it had offered Henderson an alternative show, and had issued Sandilands with a breach notice for “serious misconduct”.

The show has been taken off air for two weeks.

Sandilands must remedy the breach within this period or his contract will be terminated.

Kyle and Jackie O have worked together for 22 years. Photo: AAP

The announcement comes after Sandilands berated Henderson and made her cry during a live broadcast on February 20. She has not been on the air since.

Sandilands criticised Henderson after she looked into Andrew Mountbatten-Windsor’s horoscope, saying her interest in astrology was affecting her job.

“Your fixation on this has made you almost unworkable,” he said, adding that she was “off with the fairies”.

“You’ve had your head looking into the stars; it is too much, and it is affecting everything else. Every segment and every time you’ve spoken, you don’t know what is going on,” he said.

Sandilands claimed “everyone else in the building” had spoken about the issue with him.

Henderson said she was “totally offended” by his comments and would never attack him on air like that.

A statement released to the ASX announced the show’s end.

ARN’s statement said it had given written notice to Sandilands that his behaviour during the February 20 show was “an act of serious misconduct, which is in breach”.

“Mr Sandilands has been given 14 days to remedy this breach. If it is not remedied, ARN will terminate the services agreement with Quasar Media, and in that event Mr Sandilands will cease to present The Kyle and Jackie O Show.

“During the 14-day period, Mr Sandilands will not take part in the show.

“The KIIS breakfast show will be taken off-air effective immediately, with interim arrangements made for the show.”

The Sydney-based radio hosts show expanded their reach with a Melbourne launch two years ago. It has been plagued by poor ratings in the Victorian capital’s competitive breakfast radio market.

-with AAP