It emerged last week that the 19-year-old had been questioned by police over the incident, and now the Ligue 1 side have decided to take action following an episode that president Olivier Sadran described as “inadmissible”.
Speaking to RMC, Sadran said: “What Odsonne did is inadmissible, scandalous behaviour. For one he won't play again for us and secondly we're sending him back to Paris St-Germain.
“He was with another player and he will be sacked too - it's unspeakable.”
Mathieu Cafaro, who has played four times for TFC this season, is the other man to be sanctioned by the club.
Sending Edouard back to PSG may not be as simple as Sadran would hope, however. Goal understands the player has not yet received any document indicating that he has been sacked, and the player's relatives are confident he will continue with Toulouse until the end of his loan deal.
Edouard is regarded as a significant prospect at PSG and had been farmed out on loan in order to gain first-team experience. However, he has featured only 16 times for Toulouse in Ligue 1, largely off the bench, scoring just one goal, and has dropped further down the pecking order following the arrival of Andy Delort from Tigres in January.
Toulouse lie 10th in Ligue 1, having beaten Montpellier 1-0 at the weekend.