Lego says it has ended a promotional agreement with the Daily Mail and has no plans for further activity in the future.
It comes after a campaign called on firms not to fund newspapers that promote "hate, demonisation and division".
The campaign, which has also hit out at The Sun and Daily Express, says it supports freedom of expression but opposes an "upsurge in media hate speech" following June's EU referendum.
Stop Funding Hate is urging retailers like John Lewis, Waitrose and the Co-op to follow Lego's lead and take the same action.
The Danish toy maker, which has previously run free giveaways in the Daily Mail, tweeted: "We have finished the agreement with The Daily Mail and are not planning any future promotional activity with the newspaper."
Lego would not confirm to Sky News whether the decision was to do with the campaign.
The announcement was welcomed by TV presenter Gary Lineker, who has backed the campaign.
He said he had spoken to Walkers, whose crisps he promotes, about possibly withdrawing their adverts from The Sun.
The Lego decision also comes after the father of a six-year-old boy wrote an open letter to the toy maker, saying its links to the Daily Mail were "wrong" and it should not be supporting the publication.
Bob Jones said of the paper: "While I disagree with their political stand I can accept their right to have it. But lately their headlines have gone beyond offering a right wing opinion."
He said he did not like some of the paper's coverage, including its criticism of one of the High Court judges in a recent Brexit ruling for being gay.
Mr Jones said: "Headlines that do nothing but create distrust of foreigners, blame immigrants for everything, and as of yesterday are now having a go at top judges in the U.K. for being gay while making a legal judgment.
"Their stories have gone a little too far. (A lot too far)."
He added: "It genuinely bothers me, that a great progressive company like yours supports this 'news' paper, helping increase its circulation."
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