Bradley Knowles-Tagg was given an eight-match ban by a Rugby Football League operational rules tribunal for "using offensive or obscene language" towards a Salford player during an Under-20s fixture on June 29.
Knowles-Tagg, who according to the RFL did not attend the tribunal or respond to communications about the charge or the hearing, has 14 days to lodge an appeal.
In a statement, Championship club Featherstone confirmed that Knowles-Tagg had been released and has had no involvement with the club since the incident.
Rovers chief executive Craig Poskitt said: "Racism has no place in sport or society and Featherstone Rovers will not condone or tolerate behaviour such as this.
"As soon as we were made aware of the allegations, we suspended the player and he has had, and will not have, any involvement with Featherstone Rovers.
"We pride ourselves as a club that is open and accessible to everyone, regardless of their race, colour, sexual orientation or religion, and will do all we can to protect that reputation."