The organisers of the Turner Prize have parted company with their main sponsor after one day following a row over gay rights.

The Turner Contemporary has been chosen as the host venue for this year's event in a move which has been seen a huge honour for the gallery and a boost for the surrounding area.

But the announcement of the shortlist for the annual award this week was overshadowed by a fierce debate after it was announced travel company Stagecoach would be the main sponsor.

The company is owned by Sir Brian Souter, one of Scotland’s richest men who has funded a campaign to retain the anti-gay law section 28 and has warned that society may implode if “traditional” marriage fails.

The Guardian reported that artists - including previous Turner winners - were preparing a letter objecting to Stagecoach South East's involvement.

And the Turner has now taken decisive action by ending the arrangement.

The gallery said in a statement: "Turner Contemporary and Tate’s highest priority is to show and celebrate artists and their work. The Turner prize celebrates the creative freedoms of the visual arts community and our wider society. By mutual agreement, we will not proceed with Stagecoach South East’s sponsorship of this year’s prize.”

The travel company said: “Stagecoach South East has mutually agreed with Turner Contemporary and Tate not to continue with the company’s sponsorship of the 2019 Turner prize. We are absolutely committed to diversity in our company, however we do not want anything to distract from celebrating the Turner prize artists and their work.”

The sponsorship deal had led to awkward questions for the gallery's director Victoria Pomery's at Monday's launch, when it was announced Lawrence Abu Hamdan, Helen Cammock, Oscar Murillo and Tai Shani were on the shortlist.

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