Last week, it emerged that Vips had used the 'N-word' while playing a live-streamed video game, with Red Bull teammate Liam Lawson.  In a separate clip, Vips refuses to wear a pink Red Bull baseball cap, stating that it was "gay."

New Zealander Lawson appeared to call out Vips for his use of offensive language in the videos.   

"Following its investigation into an online incident involving Jüri Vips, Oracle Red Bull Racing has terminated Jüri's contract as its test and reserve driver. The team do not condone any form of racism," said Red Bull, in a statement posted on Twitter.

After clips of the incidents began trending on social media, Vips responded to the incident with an Instagram post on June 21 in which he wrote, "I wish to unreservedly apologize for the offensive language used during a live gaming stream earlier today," the Estonian wrote. "This language is entirely unacceptable and does not portray the values and principles that I hold. I deeply regret my actions and this is not the example I wish to set. I will cooperate with the investigation fully."

Vips, 21, became the first Estonian driver to take part in a Formula 1 free practice session when he replaced Sergio Perez at the Spanish GP earlier this year.

The Estonian joined Red Bull's youth program in 2018 and, since 2020, has driven in F2 for the Hitech team, in addition to his commitments as a test and reserve driver.

Hitech has yet to confirm whether Vips will continue representing the team, with the next round of F2 set to take place this weekend at Silverstone.

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