Ted Sarandos, Netflix's chief content officer, made the announcement during an interview with UBS during an annual media and communications conference. In light of Spacey's sexual harassment scandal, his character on the series will likely suffer an off-screen death, and the storyline will be altered to focus on Robin Wright's Claire Underwood.
"We were really excited we could get to an agreement" and wanted to provide "closure to fans", he said, Variety reported.
For a landmark show like House of Cards, embroiled in a conflict, that is about as good as we could've hoped for.
Following allegations against Spacey, the streaming company suspended production of the upcoming sixth and final season of the show, in which Spacey plays a corrupt US president, and said the series would be cancelled.
Sarandos added he was thrilled to have been able to reach the deal for the 370 people who directly work on the popular series and "the 2,000 people in Baltimore" who have jobs working for "HOC".
Netflix has fully parted ways with Spacey, cancelling the "Gore" film it had in the pipeline that was set to star Spacey.
House of Cards season 6 is still going to happen on Netflix; however, it's not going to be anywhere near as substantial as it was first planned. The fifth season of the drama ended with her character taking over as USA president.
There have also been rumours recently that Netflix will launch a house of Cards spinoff.
Netflix is also jumping into the children's entertainment space as it will create 60 original kids series in-house next year, as well as its first animated movies.
Kevin Space and Robin Wright in "House of Cards".
He said he didn't recall it, but allegations by other men followed.