YouTube said the images violated its policies. Paul pulled the images from his channel on his own.
YouTube was criticised for moving slowly in response, taking nearly two weeks to take action. YouTube said on Twitter this week that critics were right to be frustrated by its initial lack of response.
Kyncl said Paul recognises that he has made serious missteps and has expressed remorse for them.
"The most important thing to focus on is that actions speak louder than words and Logan has the opportunity to prove that," he said.
Removing Paul's work from the Google Preferred platform cuts off a significant route to advertising revenue through YouTube.
YouTube also said it would not feature Paul in the fourth season of its series Foursome and would put other work on hold. Paul is one of the platform's biggest stars, with Forbes magazine estimating he earned US$12.5 million ($17.2m) last year.
YouTube said it would soon announce steps to protect advertisers from having their products connected to controversial material.
- AP