In a statement posted on CAQ's website Sunday morning, Legault said Lutfi's contentions clash with the values and direction of his party.
"What we hope is to reunite Quebecers, whether they are federalists or sovereigntists, as long as they're willing to shelve the constitutional question for 10 years or so," the French statement read.
"What we hope, is to forge a plan to relaunch Quebec. We can't start criticizing each other, and say things like what Mr. Lutfi said."
Lutfi, recruited as a star candidate in Laval's Chomedey riding, exchanged a flurry of tweets Saturday night with a pro-sovereignty account on Twitter that rapidly escalated.
Lutfi accusing the sovereignty movement of wanting to wipe out multiculturalism.
In the exchange, that stretched over dozens of tweets, Lutfi said some separatists are indifferent and hateful towards other cultures.
The former financial planner also tweeted how he experienced racism while he worked as a financial planner for the Movement Desjardins.
CAQ will now have to find a new candidate in Chomedey.
Legault has said his party will run candidates in all of Quebec's 125 ridings, if an election is called later this summer.