The FA are undergoing an investigation, claiming that Liverpool keeper Rafaela Borggrafe made racist comments.
The newly signed player allegedly made reference to skin colour in a comment overhead by some staff and teammates.
The alleged incident was understood to have happened as Liverpool prepared to take a squad photograph.
This alleged incident reportedly happened on their debut game against Everton earlier this month.
The club to up the responsibly to promptly look into the matter internally.
It is understood that the goalkeepr has denied the allegations during the course fo the ongoing proceedings.
The club’s investigation was ongoing at the time when Borggräfe – who signed for the English team this summer on a free transfer from SC Freiburg – missed their first competitive match of the season, September’s WSL Merseyside derby at Anfield.
When speaking in relation to that loss to Everton, explaining the German keeper’s absence, the Liverpool head coach, Gareth Taylor, said that was down to an “internal club issue”.
Speaking later in September, when discussing her availability before last Sunday’s away loss against Leicester City, Taylor said of Borggräfe: “She’s back in with us. There’s nothing further to report but she’s back training with the team so she comes into contention for the weekend.”
Borggräfe was then included in the Liverpool squad at the King Power Stadium, as an unused substitute.
The club have followed FA protocols which means she will be involved unless informed otherwise by the governing body.
A club statement on Friday said: “Liverpool Football Club is aware of an alleged use of discriminatory language by an LFC Women’s player. The club has followed its protocols to the fullest extent and the alleged incident has been reported to the FA, which is conducting an investigation with our full support. We condemn all forms of discrimination; it has no place in football or society.
We are unable to comment further while the investigation is ongoing.”
The 25-year-old Borggräfe, who spent more than 10 years on Freiburg’s books after joining their academy, is in her first season in English football but is yet to make her debut for Liverpool.
Taylor was asked on Friday whether Borggräfe was available for selection at Aston Villa on Sunday and replied: “At this moment, yes, she is.” It is understood she did not train with the team on Thursday but that this was down to family reasons and unrelated to the investigation.
On the wider situation, Taylor said: “We are being really helpful and respectful of the process that you have to go through when that happens, so we’re working alongside the FA whilst that process continues.
We dealt with it in the appropriate manner initially and, of course, [we’re] trying to support all the players but also making them aware that, as a club, and surely as a nation, it’s something that obviously we don’t stand for. But we have to be respectful of the process and make sure we follow the right process.”
Manager Gareth Taylor told BBC Sport following the game with Everton that Borggrafe's absence was an "internal issue" and the club confirmed she had returned to Germany, missing several training sessions.
Borggrafe is now back in Merseyside and was set to be involved in training on Friday, having taken part in a session last week.
Liverpool will bid for their first win of the season at Aston Villa on Sunday.
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