Town mayor Paolo Urbani told City Press that a decision to suspend his contract was taken after the athlete was arrested for the alleged murder of his model girlfriend, Reeva Steenkamp.
In November, the town signed a five-year sponsorship deal with him, worth 15,000 euros per year, the paper said.
“The contract with Oscar is suspended. We are not in a hurry to find a new ambassador,” Urbani told City Press.
Pistorius was in 2011 appointed by Gemona as ambassador for its sport programme. He was to train there for four months a year under the sponsorship deal, which also covered his accommodation and other expenses.
The town was his training base during the 2011 and 2012 European summers.
Urbani said Pistorius was given the role of sports ambassador because of his triumph over his disability, and that he served as an inspiration to local people.