The decision to remove section 38 from the Isle of Man's Sexual Offences Act has been hailed as a step in the right direction by a gay rights group. The clause banning the promotion of homosexuality in schools was similar to the UK's section 28, repealed in 2003.
Members of the House of Keys voted in favour of removing the clause from the Manx act earlier this week.
They rejected an amendment tabled by Education Minister David Anderson to keep some elements of it in place.
A spokesman for the island's Ellan Vannin Gay Group, welcomed the removal of the clause.
But he said they were alarmed that Manx legislation had yet to fully "encompass and understand" human rights law.
The House of Keys debate was part of attempts to bring the island's laws into compliance with the European Convention of Human Rights.