Team Sky have suspended their Italian rider Gianni Moscon for six weeks after he racially abused a rival.
The 23-year-old was also given a formal written warning following his comments to FDJ’s Kevin Reza at last week’s Tour de Romandie.
Team Sky held a disciplinary hearing on Monday and later released a statement confirming the sanction, which includes attending a diversity awareness course.
“Gianni recognises that his behaviour was wrong,” Team Sky said.
“He apologised to Kevin Reza after the stage and again to him and his team the following morning, and this apology was accepted.
“Gianni knows that there is no excuse for his behaviour and that any repeat will result in termination of his contract,” the statement added.
Moscon was allowed to complete the race on Sunday, two days after the incident occurred at the end of Friday’s stage.
The race was won by Team Sky’s Elia Viviani.
They said the decision to allow Moscon to complete the race was taken after speaking “at length” to Reza and his team.
Reza’s team-mate Sebastien Reichenbach tweeted about an incident of racial abuse in the peloton on Friday, but did not name Moscon.
He wrote: “Shocked to hear idiots still using racist insults in the pro peloton. You are a disgrace to our sport.”
The UCI, cycling’s world governing body, said any complaint of racist abuse would be investigated.
Team Sky told BBC Sport on Monday they had not been contacted by the UCI, but they would co-operate fully with any investigation.