In February, Creative Australia withdrew its invitation to the team selected for the Biennale, Khaled Sabsabi and Michael Dagostino.
It followed questions being raised in parliament about Sabsabi's early artworks, which featured the September 11, 2001 attacks on the US, and the late Hezbollah leader Hassan Nasrallah.
The letter, organised by the Reinstate Khaled Collective, calls for Creative Australia chief executive Adrian Collette to be stood down, along with board chair Robert Morgan.
"As a sector, we have lost all confidence in the ability of Mr Collette and Mr Morgan to manage a crisis that they have caused, or lead Creative Australia in a way that prioritises advocating for, serving and supporting artists and freedom of artistic and cultural practice," the letter reads.
Signatories include hundreds of artists and curators, including Richard Bell, who was shortlisted for the Venice Biennale in 2019, and gatecrashed the event that year with a replica of the Australia Pavilion wrapped in chains.
He says the artists who signed the letter have taken a risk.
"It's likely to be used as a weapon against artists in the future, we all acknowledge that that's a possibility, even a probability," said Bell.
"I'm sure that our names have been noted and that sort of thing."
Organisers say they have yet to receive a response from Arts Minister Tony Burke, who said he did not intend to return to an era of ministerial interference in the federal arts funding body.
"I don't support decisions about artistic merit being made by the minister," he said in a statement.
"Both the decision to appoint and then to terminate the contract, were decisions made at arm's length by Creative Australia."
Open protest letters have also been issued by artists and curators who have previously represented Australia at the Biennale, while a petition by arts publication Memo Review has so far attracted more than 4000 signatures.
The Creative Australia board has appointed governance advisors Blackhall and Pearl to review the selection process for the 2026 Biennale.
However, the terms of the review do not specifically include the abrupt cancellation of Sabsabi and Dagostino's contracts.
A senate estimates hearing in late February scrutinising the decision to overturn the selection was told the board did not specifically consider legal risk.
It also revealed Creative Australia's leadership had little knowledge of Sabsabi's previous work before he was selected for Venice, as it does not review artists' back catalogues.
Creative Australia has been contacted for comment.
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