Pires: Henry should sue Spain boss

But Angel Maria Villar, president of the Spanish Football Federation, ruled out taking any action against Aragones.

"I wish to point out that Luis Aragones is no racist," he insisted. "He is a great professional and it is absurd to think otherwise. He has coached many foreign and coloured players and he has always been correct and respectful.

"I think the reported comments said during training have been taken completely out of context and it is disappointing to see that he has been involved in such a controversial incident."

Aragones denied racism and insisted his comments had been a joke aimed at psyching up Reyes, who described the remarks as "a bit of a laugh".

Pires was unrepentant, saying the comments were "not funny at all", and they were also condemned by football's anti-racist campaigners.

Leon Mann, a spokesman for Kick It Out, said: "The fact that this has arisen shows some of the attitudes that still exist in the game in hidden quarters. For the manager of a national team, one of the leading football nations, to make these comments is a blow for the game."

He said Aragones's comments were not as offensive as those made by Ron Atkinson, who was forced to resign as an ITV football pundit earlier this year after describing Marcel Desailly as a "f****** lazy thick n****r".

"Atkinson used the term n****r, which was particularly hurtful to the black community," Mann added. "Still, any form of racist abuse is very disappointing."

"It is not a perfect situation in the UK but it is a lot better than across most of Europe. There is a lot of work to be done in Spain."

A spokesman for FIFA said: "The coach is an employee of the Spanish Football Federation and it is their responsibility. If someone makes a formal complaint to us, we would look into it."