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3rd February 2018
03:20pm GMT
He had been due renew his Coronation Street contract, thought to be worth £100,000 (around €113,323) a year, next month.
Dowd had directed almost 200 episodes of the soap and has worked in television for over three decades and has credits for other ITV shows including Heartbeat and Emmerdale.
It comes after Corrie actor Bruno Langley was fired after admitting to sexually assaulting two women on a night out.
"No one can believe the show has found itself mired in controversy yet again," a source told the publication.
"Tim is very much innocent until proven guilty, but the fact of his arrest means we are attracting headlines for all the wrong reasons."
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