D.C. United and forward Taxi Fountas have mutually agreed to terminate his contract after allegations that he directed a racial slur toward teammate Nigel Robertha.

ESPN reported last week that Fountas' contract was set to be ended with the MLS club after the allegations, which stem from an incident that occurred on July 15 during the second half of a match between DCU and the New England Revolution.

"D.C. United and forward Taxi Fountas have mutually agreed to terminate his contract, effective immediately," D.C. United said in a statement Thursday.

"Fountas was placed on administrative leave by MLS on July 21 following what the league determined were credible allegations that he used prohibited and discriminatory language against another player.

"There is no place for racism, homophobia, misogyny, or discrimination of any kind in our sport and world and D.C. United do not tolerate any acts of this nature."

Around the 67th minute of the game against New England, Fountas, who is white, and Robertha, who is Black, can be seen arguing. The disagreement carried into the locker room after the match, with Robertha allegedly striking Fountas with a foam roller, a device commonly used for treating muscle injuries, The Athletic reported.

Later, Robertha is reported to have told team officials that Fountas used the N-word, which the club immediately communicated to league officials, resulting in an investigation.

Fountas and Robertha were initially placed on administrative leave, although Robertha was reinstated on July 24.

"It was announced earlier today that D.C. United and forward Taxi Fountas have mutually agreed to terminate his contract, effective immediately," MLS said in a statement.

"Fountas was placed on administrative leave on July 21 following credible allegations that he used prohibited and discriminatory language against another player.

"Major League Soccer and its clubs are committed to eradicating racism from the game."

This is the second time since Fountas joined D.C. United in January 2022 that accusations of racist behavior have been leveled at him.

In an MLS regular-season match against Inter Miami last Sept. 18, Fountas was alleged to have directed a racial slur at then-Miami defender Damion Lowe that was overheard by Miami's Aimé Mabika.

A subsequent investigation conducted by MLS found Mabika's allegation "credible," but, because it couldn't be corroborated, no fine was issued to Fountas.

Information from ESPN's Jeff Carlisle was used in this report.