Both Kurtz and Daily Beast editor-in-chief Tina Brown confirmed his departure over Twitter.
Kurtz did not acknowledge any link between the retraction and his departure.
He tweeted that "as we began to move in different directions, both sides agreed it was best to part company."
He added that "this was in the works for some time" and that it was time for him to "move on to other opportunities."
In the retracted post, Kurtz says Collins didn't "come clean" about the fact that he was engaged to be married to a woman before declaring he was gay.
But Collins does just that in the Sports Illustrated piece that came out Monday.
Brown tweeted simply that Kurtz and The Daily Beast had "parted company ... we wish him well."
Kurtz, The Washington Post's former media columnist, is also the host of CNN's "Reliable Sources." CNN did not immediately respond to a request for comment.
Kurtz and a spokesman for The Daily Beast also did not immediately respond to requests for comment.