In a sternly-worded letter obtained by Fairfax Media, WIN chief executive Andrew Lancaster said the network sees "no merit" in being a member of Free TV when it remains "inherently constrained from supporting the best interests of the members it was established to represent".
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"Unfortunately, recent events have shown that one Free TV member has views on significant industry issues that appear to be completely at odds with the vast majority of, if not all, the other Free TV members, and are not in the best interests of the other members of Free TV and their respective stakeholders," Mr Lancaster wrote in a letter dated September 1.
It is understood the one member referred to is Seven West Media and the issue is media reform.
Billionaire Kerry Stokes, who holds close to 40 per cent of Seven West through Seven Group Holdings, along with News Corp has strongly lobbied against any changes to media ownership legislation.
WIN, which is owned by billionaire Bruce Gordon, along with fellow regional broadcasters Prime Media, Southern Cross and Imparja, last month, launched a TV advertisement campaign to drum up public support for media reform as they continue to lobby the government.
Seven has also launched its own TV ad campaign against reform.
Seven, which is the second largest shareholder in Prime, told Fairfax Media that there was "no demonstrable link between calls to scrap the reach rule and sustainability of local news."
Communications Minister Malcolm Turnbull had, earlier in the year, proposed scrapping the reach rule preventing TV networks from broadcasting to more than 75 per cent of the population, and the two-out-of-three rule preventing media companies from owning a TV station, radio network and newspaper in the same market.
However, the reforms were shelved by Prime Minister Tony Abbott after opposition from Seven and News.
Mr Lancaster wrote that Free TV's constitution commits it to promoting, defending and conserving the rights of all its members.
"However, there is an express constitutional limitation that constrains Free TV from properly representing the interests of its members, where there is not unanimity on a particular issue," he said.
He said it was disappointing that Free TV is not able to serve as the "public voice" of the industry on issues affecting the majority of its members.
Free TV chairman Harold Mitchell said he was sorry to see WIN leave the lobby group and wished them well.
"Free TV continues to be a strong force for TV production in a challenging advertising market," he said.
