Alomar, who retired before the 2005 season, has also been terminated from his job as a consultant to Major League Baseball.
Commissioner Robert Manfred said his office requested an external legal firm to investigate an allegation of sexual misconduct in 2014 that was reported by a baseball industry employee earlier this year.
"Having reviewed all of the available evidence from the now completed investigation, I have concluded that Mr. Alomar violated MLB's policies, and that termination of his consultant contract and placement on MLB's Ineligible List are warranted," the commissioner said.
"We are grateful for the courage of the individual who came forward. MLB will continue to strive to create environments in which people feel comfortable speaking up without fear of recrimination, retaliation, or exclusion," Manfred concluded.
MLB provided no further details on the 2014 incident, citing the accuser's right to privacy.
In a statement released on social media, Alomar said, "I am disappointed, surprised, and upset with today's news. With the current social climate, I understand why Major League Baseball has taken the position they have.
"My hope is that this allegation can be heard in a venue that will allow me to address the accusation directly. I will continue to spend my time helping kids pursue their baseball dreams. I will not be making any further comment at this time."
In the wake of the announcement, the Toronto Blue Jays said the team supports MLB's decision and were immediately severing ties with the former second baseman. Alomar played five seasons of his 17-year career with the Blue Jays and won World Series rings with the team in 1992 and 1993.
"The Blue Jays are committed to advancing respect and equity in baseball and are taking further action by removing Alomar from the Level of Excellence and taking down his banner at Rogers Centre," the team said in a statement.
The National Baseball Hall of Fame announced that Alomar's plaque will remain on display in Cooperstown, New York.
"The National Baseball Hall of Fame was shocked and saddened to learn of the news being shared today about Roberto Alomar," Hall of Fame Chairman of the Board Jane Forbes Clark said in a statement. "When he was elected to the Hall of Fame by the Baseball Writers' Association of America (BBWAA) in the Class of 2011, Alomar was an eligible candidate in good standing.
"His plaque will remain on display in the Hall of Fame in recognition of his accomplishments in the game, and his enshrinement reflects his eligibility and the perspective of the BBWAA voters at that time."
Alomar hit .300 over his 17 big league seasons, winning 10 Gold Glove awards and being named an all-star 12 times during a career that spanned from 1988 to 2004.
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