COLES and Telstra have pulled advertising from Sydney radio station 2Day FM as the fallout from the royal prank call continues.

Coles announced on Saturday morning it had informed the station's management it would be removing all its advertising from the station as soon as possible.

A spokesman for Telstra said the telco has suspended  "advertising on the station until an investigation into the issue has concluded''.

It is believed Optus is reviewing the situation and will seek a explanation from 2Day FM.

In a separate move, Australia's broadcasting regulator says it will be quizzing the owners of 2DayFM over the incident.

Sydney 2Day FM presenters Mel Greig and Michael Christian have been taken off air after their prank call to London's King Edward VII Hospital was linked to the death of respected nurse and mother Jacintha Saldanha, 46, yesterday.

The hospital was treating the Duchess of Cambridge for acute morning sickness.