West Ham have sacked director of player recruitment Tony Henry over claims he said the club would not sign any more African players.
The decision follows a report by the Daily Mail which carried quotes fromHenry stating African players “cause mayhem” when they are not in the team.
The club said his comments were “unacceptable”, adding they conducted a “full and thorough investigation”.
It added: “West Ham United will not tolerate any type of discrimination.”
On Friday, Hammers manager David Moyes said the mood of the squad had not been affected by the controversy.
“I’ve spoken to one or two of the African players and they seem fine and they’ve trained well. Morale is good. We’re on the back of a pretty good run and we want to keep it going,” said the Scot.
“I’ve never, ever witnessed any prejudicial transfer policy at any club I’ve been at.”
The Professional Footballers’ Association had said it was “shocked” by the reported comments. It added: “The PFA strongly condemns any such views and there is no place for them in football.”
West Ham have six first-team squad members of African descent: Cheikhou Kouyate, Pedro Obiang, Joao Mario, Angelo Ogbonna, Arthur Masuaku and Edimilson Fernandes.
Senegal striker Diafra Sakho left the club in the January transfer window to join Rennes, with Ghana international Andre Ayew heading to Swansea.