Worldwide Wrestling Entertainment has officially ended its contract with the Wrestlemania star after earlier deleting most references to him from its websites and promotional materials.
A report by America’s National Enquirer and Radar Online website detailed the contents of an unauthorised sex tape which allegedly shows Hogan – whose real name is Terry Bollea - making racial slurs and using the n-word.
“I guess we’re all a little racist,’ he is alleged to have said.
Hogan issued an apology to PEOPLE magazine, saying: "This is not who I am. I believe very strongly that every person in the world is important and should not be treated differently based on race, gender, orientation, religious beliefs or otherwise.
"I am disappointed with myself that I used language that is offensive and inconsistent with my own beliefs."
WWE did not give a reason for its decision, but issued a statement saying it is: "Committed to embracing and celebrating individuals from all backgrounds as demonstrated by the diversity of our employees, performers and fans worldwide."
Earlier, social media was alight with rumours after wrestling correspondents noticed Hogan had been erased from the main WWE website.
World Wrestling Entertainment’s Hall of Fame was amended to remove Hogan and he has been left off a list of judges for the current Tough Enough competition series.
People were reacting on Twitter before full details were released by the Enquirer.
British representatives of WWE declined to comment when contacted by The Huffington Post UK.
Meanwhile Hogan has tweeted a somewhat cryptic message.