The 27-year-old, who was found guilty earlier this year for allowing his flat to be used to produce crack cocaine, was selected to take part in the 200m event in Birmingham next month.
Reid was one of 18 men charged last year with drugs and firearms offences, all of which he denied.
The 2018 medalist received a suspended sentence in February and ordered to carryout 220 hours of unpaid work by the Bristol Crown Court.
A statement from Commonwealth Games Northern Ireland said it was "disappointed to confirm that track athlete Leon Reid has been denied entry to the Birmingham 2022 Commonwealth Games following a security risk assessment".
"Leon had been selected by CGNI and had been entered into the 200m event prior to the 29 June deadline," added the statement.
"Notification was subsequently received from the Birmingham 2022 Organising Committee that he would not be allowed to participate.
"Commonwealth Games NI is currently seeking clarity on any potential appeal mechanism, and the athlete has been offered well-being support as he deals with this news."
Reid has competed for Ireland at the Olympic Games and the European Championships and Irish governing body Athletics Ireland said in May that it would continue to consider him for selection despite his criminal conviction.