The Football Association has accepted the resignation of anti-racism campaigner Paul Elliott from all his positions within the organisation after he made "discriminatory abusive comments".
Elliott, a former Chelsea and Celtic defender, allegedly aimed a racial insult via text at ex-Charlton player Richard Rufus in an argument over a failed business venture.
FA chairman David Bernstein said in a statement that Elliott's position was "untenable" after the matter was reported by press earlier this week.
Elliott was a leading light and trustee of the Kick It Out campaign, a position from which he has also stepped down, and served on the FA's judicial panel and as a nominated member of UEFA committees.
The 48-year-old received a CBE for services to equality and diversity in football earlier this month.
A statement read: "The FA has today accepted the resignation of Paul Elliott from all roles representing the organisation.
"This follows a conversation in which discriminatory abusive comments were made to Richard Rufus."
Bernstein said: "I wish to thank Paul for his dedicated and unstinting work, particularly in the area of anti-racism.
"I am saddened by this turn of events and it is with regret that we accept Paul's resignation.
"However, the use of discriminatory language is unacceptable regardless of its context and in effect has made Paul's position untenable."
Elliott released a statement via Kick It Out explaining his decision. He said: "Earlier this week, a former friend and business colleague made public an SMS text message I sent him, in which I used a term which is widely known as being derogatory to my own community.
"I regret using it; it is inappropriate and not part of my everyday vocabulary.
"As an advocate of high standards of public behaviour, and integrity in public life, I know the use of this word sends out mixed messages and contradicts my position as a Kick It Out trustee.
"I will continue to be active in other projects in what I believe to be a true and just cause."
Elliott played for Charlton, Luton and Aston Villa before spells in Italy with Pisa and Bari. He returned to the UK with Celtic and later moved to Chelsea, where his career came to an end due to injury in 1994.
He then moved into a career in the media and football administration.
A statement from Kick It Out read: "Kick It Out extends its thanks to Paul for the key role he has played over the past 20 years, through his distinguished unpaid work, loyalty and devotion in helping the campaign in all areas of its work.
"His commitment to the aims and objectives of Kick It Out has inspired others everywhere."