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Emily Parr was removed from the Big Brother house at 3.30am after using a racially offensive word,
Channel 4 said she was heard to say "Are you pushing it out you ni**er?"
The news follows the controversial Celebrity Big Brother race row.
Channel 4 issued a statement saying: "Emily immediately made clear that she had not intended to offend and that the comment had been meant as a joke.
"In discussing what she had said, Charley and Nicky agreed that they were not personally offended, although both did express shock at the language she had used.
"In the ensuing discussion, Emily acknowledged that she should have been more careful with her words.
"The comment was not screened as part of the `as live` streaming on E4 and was immediately reported up to senior production staff at Brighter Pictures, the Endemol UK subsidiary that produces the show.
"In consultation with senior executives at Channel 4, the decision was taken to remove Emily from the house on the grounds that she had broken the rules governing contestant behaviour."
Channel 4 took immediate action after being accused of failing to take the Celebrity Big Brother race row seriously, and being forced to apologise at the start of this series for the controversy.
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