The Ukip councillor alleged to have called illegal immigrants "sandal-wearing, bomb-making, camel-riding, goat-f******, ragheads" could be ejected from the party.
The Sunday Mirror attributed the comments to the Facebook account of Chris Pain on Sunday.
Later that day the Huffington Post UK was given further information showing more racist comments on the councillor's account.
Pain, who is also the party’s East Midlands chairman, has insisted the slurs are the result of his Facebook page being hacked.
Ukip spokesman, Gawain Towler, told the Skegness Standard: “They are serious allegations and if proven true there is no way Chris Pain could remain a councillor with UKIP.
“However we don’t hang a man until he’s proven guilty and at the moment Chris is saying that his account was hacked.”
Last week Pain and 15 other Ukip councillors were forced to defend their decision not to sign an anti-racism pledge.