Sharif was disqualified by the same court past year for his role in the Panama Papers case.
The ruling by Chief Justice Mian Saqib Nisar, heading a three-judge penal, was in response to petitions from opposition parties who challenged a constitutional amendment pushed through parliament by Sharif's party past year, after he resigned as premier over corruption charges.
A three-member bench of the apex court led by Chief Justice Mian Saqib Nisar ruled that any person who has been disqualified for the parliament, can not serve as the party president as well.
"Parliamentarians must possess good character to run the affairs of Parliament", he said.
As a result, the Elections Act 2017 was passed by Parliament.
Aurangzeb further said that Wednesday's verdict by the apex court would strengthen the narrative of Nawaz Sharif and he would continue to have a say in the party.
Pakistan's former prime minister Nawaz Sharif in Islamabad in Pakistan in 2017.
In January 2018, the Supreme Court had accepted petitions the petitions for hearing against the Election Act of 2017.More news: Britain lowers expectations for Brexit
"The Election Commission is directed to remove the name of Nawaz Sharif as president of PML-N from all official records", Chief Justice Saqib Nisar said. Chief Justice Nisar said.
PML-N leader Talal Chaudhry, reacting to the verdict, told Geo News that the recent developments were "against democratic principles".
With the judgement, the court has ruled out tickets issued by Sharif for the Senate elections to be null and void. SC has also annulled all decisions made by Nawaz Sharif as the party head.
The judgment also hung the fate of the Senate elections scheduled to be held in March, in the balance, local broadcaster Express News reported quoting constitutional experts.
"Whoever wants to be in the party will have to accept Nawaz as final authority", he said.
Sharif and some of his family members are facing charges relating to their ownership of posh properties in London.
Sharif has held several rallies in different parts of Pakistan since his ouster.
This is unedited, unformatted feed from the Press Trust of India wire.