Toussaint was suspended after being arrested for drunken driving and pleaded guilty to a lesser charge on Tuesday. Clark was suspended for his involvement in an alleged laptop theft.
Head coach Brady Hoke said in a release that the decision was made in the best interest of the program and the players themselves, according to the Detroit Free Press.
"The decision was not easy, but I feel it is in the best interest of this program and for these kids, and those always will be my priorities. We have choices every day, and you have to be accountable to this program, your teammates, your family and the University of Michigan. […]
"They are good young men who made poor choices, and we will continue to support them as members of our team and family."
Toussaint led the Wolverine running backs and was second on the team with 1,041 rushing yards last year.
Michigan takes on Alabama at 8 p.m. Saturday night at Cowboys Stadium.