The platform's CEO condemned the rapper's anti-Semitic comments and said that Spotify is deciding whether or not to remove the songs.
The sportswear brand has previously said the Yeezy brand collaboration with Ye was one of the most successful in the company's history.
Cutting the partnership means Adidas will make a net loss of £217m in 2022 as a result, it said.
Ye, who has been diagnosed with bipolar disorder, had previously accused Adidas of stealing his designs in a now-deleted Instagram post.
In a statement on Tuesday, Adidas wrote: "Adidas does not tolerate antisemitism and any other sort of hate speech. Ye's recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company's values of diversity and inclusion, mutual respect and fairness."
Instagram and Twitter suspended Ye's account in the days following his anti-Semitic remarks. Among various celebrities decrying Ye's anti-Semitic remarks were former 'Friends' actor David Schwimmer, and Ye's former wife Kim Kardashian, a reality TV star who is currently studying to become a lawyer. On Monday, Ms Kardashian stated on Twitter: "Hate speech is never OK or excusable. I stand together with the Jewish community and call on the terrible violence and hateful rhetoric towards them to come to an immediate end."
Ye's business partnerships have also come under increasing pressure: Bank JP Morgan and clothing retailer Gap said in recent months that they were ending their relationship with Ye.
Ye accused Gap of not honouring terms of their deal, including by failing to open standalone stores for his Yeezy fashion label.
Gap wrote in a statement on Tuesday that it will be removing Yeezy Gap products from its stores, and that it had shut down the YeezyGap.com website.
"Antisemitism, racism and hate in any form are inexcusable and not tolerated... We are partnering with organisations that combat hate and discrimination," Gap said on its Instagram account, @yeezyxgap.
Although Adidas put its relationship under review after Ye showed his "White Lives Matter" T-shirt, the company did not say the collection was the reason for the review.
It told the BBC it had made the decision to put the partnership under review after "repeated efforts to privately resolve the situation" of being accused by Ye of "stealing" his designs.
The phrase "Black Lives Matter" was widely used after George Floyd, an unarmed black man, was killed by a police officer in Minneapolis in the summer of 2020. It has since become a political and social movement that seeks to highlight racism experienced by black people, particularly incidents of police brutality and racially motivated violence.
High-end fashion house Balenciaga and talent scouts Creative Artists Agency also cut ties with Ye earlier in October.
Film and television production company MRC said on Monday it will not be airing its recently completed documentary on the rapper.
"Kanye is a producer and sampler of music. Last week he sampled and remixed a classic tune that has charted for over 3,000 years - the lie that Jews are evil and conspire to control the world for their own gain... As leaders of this company (a Jew, a Muslim, and a Christian), we feel duty bound to say to all of you this is a pernicious, terrible use of false logic," MRC wrote on Monday.
On 15 October, speaking on US podcast Drink Champs, Ye defended his anti-Semitic tweet, adding: "Jewish people have owned the black voice... whether it's through all of us being signed to a record label, or having a jewish manager", and that "the jewish media blocked me out". Drink Champs apologised for and removed the episode.
American football player Aaron Donald and basketball star Jaylen Brown have terminated their contracts with Kanye West's sports marketing agency, Donda Sports, after his anti-Semitic comments. On Monday, NBA All-Star Brown said he planned to stay with Donda, but reversed his decision a day later.
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