Head coach Bev Priestman also removed herself from coaching the team against New Zealand.
Staff from New Zealand’s team – the Football Ferns – noticed a drone flying above their training session in St Etienne on Monday.
Reporting it to police, the operator was identified as a supporting staff member of Canada’s team.
The Canadian Olympic Committee later confirmed that assistant coach Jasmine Mander and an analyst were kicked off the Games team following the incident.
Canada are the reigning Olympic champions and New Zealand’s first opponents at the Paris Games, on Friday morning (AEST).
“Joseph Lombardi, an unaccredited analyst with Canada Soccer, is being removed from the Canadian Olympic Team and will be sent home immediately,” the COC said in a statement.
“Jasmine Mander, an assistant coach to whom Mr. Lombardi reports to, is being removed from the Canadian Olympic Team and will be sent home immediately.”
Lombardi, who had been detained by police, was handed an eight-month suspended jail term and his material was confiscated, a French court said.
FIFA said they had opened proceedings against Canada Soccer, Priestman, Lombardi and Mander due to a potential breach of the body’s disciplinary code.
“The matter will be submitted for the consideration of the Disciplinary Committee in the next days,” FIFA said in a statement.
A statement issued by the New Zealand Olympic Committee said they were “deeply shocked and disappointed by this incident” and wanted answers.
“The NZOC has formally lodged the incident with the IOC integrity unit and has asked Canada for a full review,” the statement read.
“The NZOC and New Zealand Football are committed to upholding the integrity and fairness of the Olympic Games.”
Priestman apologised for the offence.
“On behalf of our entire team, I first and foremost want to apologize to the players and staff at New Zealand Football and to the players on Team Canada,” she said.
“This does not represent the values that our team stands for. I am ultimately responsible for conduct in our program.”
– AAP