The Man City fan arrested in connection with the alleged racial abuse during Saturday's Manchester derby has been released on bail.
Anthony Burke, 41, was seen making a gesture to Manchester United midfielder Fred during the clash at the Etihad.
He was subsequently arrested by Greater Manchester Police but denied the allegations.
And it has been confirmed that he has been released on bail, pending further investigations.
Sky Sports cameras showed Burke making the gesture as Fred complained to the referee after being hit by an object thrown from the crowd.
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The incident was widely condemned across football by both managers, Pep Guardiola and Ole Gunnar Solskjaer.
But Burke, an army veteran, has taken to his Facebook profile to refute the allegation that he is a racist.
He wrote: "Listen, I'm only racist c*** because I had a screen shot that made me look it.
"However I ain't racist, watch the match half of it was me with me putting my hands in my pants.
"Bullsh** not ar*** I know the true and I've already made appointment to speak to the police which I did so think what you like."
Fred, who was the target of the taunts, insisted the incident was a reflection of a "backward society".
Speaking to ESPN Brazil, Fred said: “Unfortunately, we are still in a backward society. [It is a shame] we still have to live with that in 2019.
“On the field, I didn't see anything. I saw it only in the locker room afterwards. The guys showed me. He even threw a lighter and it hit me.
“I try not to care about that. I try to look ahead. Unfortunately, this is happening in some stadiums.
“It happened here, it happened in Ukraine with some friends. It's sad, but we have to keep our heads up and forget about that.”