Red Bull have terminated the contract of their test and reserve driver Juri Vips after he allegedly used racist language during an online gaming stream.
The Estonian, who races in Formula 2 for Hitech Grand Prix, was suspended last week following incident broadcast live on Twitch.
On Tuesday, Red Bull announced that the 21-year-old had been sacked.
A statement from the Formula One team read: "Following its investigation into an online incident involving Juri Vips, Oracle Red Bull Racing has terminated Juri's contract as its test and reserve driver.
"The team do not condone any form of racism."
Vips is highly rated within the young driver ranks and was seen as a leading contender for a seat with AlphaTauri, but was leapfrogged in the pecking order by Yuki Tsunoda following a coronavirus-disrupted 2020 campaign.
He drove for Red Bull in the first practice session at last month's Spanish Grand Prix and was likely to get further opportunities this season due to F1 regulations that promote the use of young drivers.
The sacking of Vips follows condemnation from Formula One and Red Bull towards former driver Nelson Piquet, who allegedly used a racial slur towards Lewis Hamilton last year.