The Red Bull Formula 1 team has dropped reserve driver Juri Vips after using racist language during a live gaming stream.
The Estonian, who competes in the Formula 2 series, was temporarily stood down from all duties on 21 June.
A statement on Red Bull Racing's official Twitter account read: "Following an investigation into an online incident involving Juri Vips, Red Bull Racing has terminated Juri's contract as its test and reserve driver.
"The team do not condone any form of racism."
Despite Red Bull's move to cancel Vips' contract, it is understood he could yet race in F2 for the Hitech GP team on the undercard of this weekend's British Grand Prix at Silverstone.
Vips, 21, became the first Estonian driver to participate in an F1 race weekend when he took over from Sergio Perez during opening practice for May's Spanish GP.
Vips last week issued an apology for his "unacceptable" language.
He said: "I wish to unreservedly apologise for the offensive language used during a live gaming stream earlier today. This language is entirely unacceptable and does not portray the values and principles that I hold.
"I deeply regret my actions, and this is not the example I wish to set. I will co-operate with the investigation fully."