David Clutterbuck will remain with the borough council in Bournemouth, where this week the Conservatives held their annual conference, as an independent.
Following the remarks, the 71-year-old was suspended from council committees.
Mr Clutterbuck told BBC News that "the Conservatives were waiting for an opportunity to get rid of me".
The councillor said he thought he had been set up and that "the whole thing got blown out of proportion".
I imagine now it would be illegal to only have animals of the opposite sex
David Clutterbuck's email
"Bournemouth West Conservative Association have this ageist law, which is now illegal, where anyone over 70 is not allowed to apply for re-election.
"I will be 72 by the time of the next May election and I'd been told I could not stand again."
The row started when an e-mail was forwarded with a joke that if Noah tried to build an ark in 2006 he would have to overcome planning rules, building regulations, environmental impact studies, fire and safety regulations and the RSPCA over animal welfare.
Mr Clutterbuck added to the email: "I imagine now it would be illegal to only have animals of the opposite sex."
On Thursday, Mr Clutterbuck told BBC News there was no way he would say sorry because there was nothing wrong with his comments.
Stephen McLoughlin, leader of the Conservative councillors in Bournemouth, said he was saddened by the news but would have liked Mr Clutterbuck to apologise for what had happened and withdraw his remarks.
'Fight the next election'
He said the comments were "contrary to the council's equality and diversity policies and not consistent with the motion on dignity and respect posed by Bournemouth's Conservatives".
Mr McLoughlin suspended Mr Clutterbuck from the personnel board and the developing communities and tackling crime scrutiny and review panel - both deal with homosexual issues.
But Mr Clutterbuck said he had no regrets about sending the e-mail and would stay with the East Cliff and Springbourne ward.
Supporters have sent Mr Clutterbuck 191 emails, and he says he received emails overnight backing him from Canada and the USA.
He added: "I've got six to eight months to stand as an independent.
"I will fight, all things being equal, the next election, next May, as an independent."
Courtesy of the BBC

