The International Paralympic Committee said Azerbaijan Gundus Ismailov has been banned for four years after nandrolone and methandienone were found in his body.
Isamailov tested positive after winning the 90-kg division with a world record lift of 240 kg.
The IPC said he would not be able to compete at the next Paralympics in Athens in 2004 and his record would be wiped out.
Ismailov is the 11th athlete to be banned from the Sydney event for doping.
Performance-enhancing
Nine other powerlifters were found to have used performance-enhancing drugs following out-of-competition tests before the Games opened.
And on Sunday, US sprinter Brian Frasure was stripped of his silver medal in the F44 200m for amputees after testing positive for steroids. He has also been banned for four years.
Frasure was allowed to keep the earlier silver he won in the 100m following a negative test.
As a result of Ismailov's disqualification, Germany's Bernd Vogel will be awarded the gold medal, with Egypt's Abd El Monem Farag receiving silver and Wu Yadong of China bronze.