Spain coach Luis Aragones was fined 3,000 euros ($3,964) by the Spanish Football Federation on Tuesday for remarks about France's Thierry Henry.
Aragones caused controversy in October when he was heard in a training session telling striker Jose Antonio Reyes he was better than "that black shit", referring to the Spaniard's Arsenal team mate Henry.
"They have fined him 3,000 euros. The judge understood that because of the position he holds he should have behaved differently," a Federation spokesman said.
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The Spanish federation opened an investigation into the coach's behaviour and the judge leading the probe recommended fining Aragones 3,000 euros.
Aragones apologised after widespread criticism of his behaviour, saying he had not meant to offend anyone and that his conscience was clear. The 66-year-old stirred further controversy, however, by defending his comments before a friendly against England.
That match in Madrid was marred by racist abuse of England's black players by sections of the crowd.