Yes, shift-click on the spell in the spellbook menu. Don't fear that you are losing the spell forever. Once you remove it from the spellbook, the spell sellers start selling the spell again, so that you can buy it again if you need it. Naturally, you will pay for the spell again as well.
This works in plain Morrowind. I have no experience with Tribunal, Xbox, and so on.
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My name is Demon\'s Last Day. Yes, the last one.
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