The Vatican confirmed that Cardinal Pell is one of the three cardinals that was not reappointed the Council of Cardinal Advisers (C9).
The Church has been hit by a series of child abuse scandals in recent years, with widespread allegations of cover-ups, including against the pope himself.
His Chilean colleague, Francisco Javier Errazuriz, faces accusations that he covered up alleged child abuse while serving as Archbishop of Santiago, claims he also denies.
"A code of silence has been our culture for too long, February's meeting should mark a new beginning for bishops' responsibility, or even for a new control system", the source said.
They also confirmed a rift in the Church between some ultra-conservative Catholics and a pope they see as a unsafe progressive interested in social issues to the detriment of Church doctrine.
On Dec. 11, an Australian jury reportedly reached a verdict on Cardinal Pell.
Though he has been away from Rome since announcing his leave of absence in June 2017, Pell technically remains prefect of the Vatican's economy secretariat.
Just two months before a scheduled meeting to discuss how to move forward in the clerical sexual abuse scandals, the removal of the two prominent cardinals is seen as a further embarrassment to the Catholic Church.
Laurent Monsengwo Pasinya has also recently been discharged from his position as archbishop of Kinshasa, for age and health reasons.