Dovizioso, who has signed for 2017 and 2018, has made eight podium appearances for Ducati to date. Iannone will leave at the end of the year.
"It’s never easy to take a decision like this one, especially when you have two great riders like the two Andreas in your team," said Ducati boss Luigi Dall'Igna.
(Reporting by Alan Baldwin, editing by Neville Dalton)
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