The 25-year-old has been suspended by Hull for the remainder of the season and will miss a return to his former club Tottenham.
Livermore failed a random test after Hull’s 2-0 win at Crystal Palace on April 25.
A source close to Steve Bruce said the Hull manager was “devastated” by the news.
Any player who tests positive post match for a “social drug” is subject to a sanction of up to two years, according to Football Association and Premier League guidelines.
But he could also face the sack for gross misconduct if the club sees fit.
Livermore, who has one England cap, impressed during a loan spell from Spurs last season and was Hull’s record signing when he joined for £8million on a three-year deal in July last year.
Hull said in a statement: “Following suspension by the FA the club has subsequently suspended Jake Livermore pending further investigations to be made by the FA and our own internal disciplinary procedures.”
Jake Livermore faces the sack after testing positive for cocaine
The PFA declined to comment but said it would offer Livermore “full support”.
Livermore’s ban is another blow to Bruce whose team are scrapping for their lives at the bottom of the Premier League. Hull are 18th in the table with two matches remaining.
They need to beat Tottenham to guarantee their survival bid goes to the last match of the season against Manchester United.
He is the most high-profile footballer to test positive for cocaine since Chelsea striker Adrian Mutu, who was banned by the FA and sacked by the club in 2004.
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