EXCLUSIVE John Torode was sacked by the BBC from MasterChef for using 'the worst racial slur there is'
The Australian-born chef, 59, has also been accused of lying about claims he wasn't told he was being sacked before it ended up in the press.
The BBC has said the host's contract would not be renewed after a report found he had used an 'extremely offensive racist term' during drinks after filming the show.
But the corporation has refused to say what the slur was - as has Mr Torode - leading to feverish speculation online that it could be the N-word.
A source has claimed that it was 'worst racial slur there is' and that the Beeb and production company Banijay believe the case for sacking him is 'watertight' if he tried to go to court.
Another insider told MailOnline that there was 'relief' at MasterChef HQ that Torode is gone, saying he was 'horrible' to work with at times.
Mr Torode has taken the stance that said 'he had absolutely no recollection' of the incident and did 'not believe that it happened'.
This is despite a witness claiming he had apologised immediately and 'was mortified' - before insisting what he said was not meant as a racist remark.
Mr Torode said this week, after his sacking, in a lengthy statement posted to Instagram: 'Although I haven't heard from anyone at the BBC or Banijay – I am seeing and reading that I've been "sacked" from MasterChef and I repeat that I have no recollection of what I'm accused of'.
It was also claimed the BBC and Banijay had asked Torode to leave MasterChef citing mental health.
The BBC declined to comment on the claims.
But an insider said: 'The BBC and Banijay spoke to his reps before the announcement on Tuesday.
'The BBC never suggested he resign nor raised mental health'.
Richard Osman appears to know the racist term Torode was claimed to have used.
Speaking on his Rest Is Entertainment podcast with Marina Hyde, he said said that his sources were shocked when they heard claims that Torode was not told he was being sacked before it was announced.
Mr Osman claimed that Torode was offered a year off and some training - but he refused. So he was fired.
Mr Torode is said to be considering taking legal action against the BBC after he was sacked from MasterChef.
Sources suggest the chef is 'preparing to launch a lawsuit against the BBC' and wants to pursue bosses for unfair dismissal.
'He's telling people there is no proof of his supposed comment. It was not in a work capacity, it was just hearsay. John is determined to clear his name,' sources told The Mirror.
But, such legal action may prove impossible for John as sources told MailOnline his contract was with Banijay rather than the BBC.
This comes as MasterChef bosses are reportedly pushing to air Gregg Wallace and John Torode's final series 'when the dust settles' after they were both sacked from the cooking show.
The upcoming series' - which have already been filmed - features former I'm A Celeb star and restaurant critic Grace Dent, who replaced Gregg to co-host with John.
The Sun reports that The BBC and production company Banijay plan to air both the amateur and celebrity editions.
However, MailOnline understands BBC director general Tim Davie, who has the final say, has not yet made his decision on whether MasterChef will or will not be aired.
A source told the Sun: 'The BBC and Banijay have faced a moral and professional dilemma like never before. Obviously Gregg's case was more clear cut, but John being dragged through the mud wasn't what anyone wanted or expected to happen.
'But at the same time, and as a publicly funded body, the BBC has a duty to both provide entertainment as well as fulfil its obligations to cast, crew, contestants and viewers alike.
'If they were to can these two series, hundreds of people — those who appeared or worked on the shows — would be so bitterly disappointed. So the feeling at present is that the show, quite literally, must go on — albeit once the dust has settled and all the fuss died down.'
MailOnline has contacted the BBC for comment.
The Australian chef was dramatically axed from MasterChef - hours after the BBC's director general refused to back him over an allegation of using racist language.
The corporation said the host's contract would not be renewed after a report found he had used an 'extremely offensive racist term' during drinks after filming the show.
The complaint against John was revealed in the report into co-presenter Gregg's inappropriate behaviour.
Gregg, 60, was sacked after dozens of complaints against him were upheld.
However, MailOnline understands BBC director general Tim Davie (pictured), who has the final say, has not yet made his decision on whether MasterChef will or will not be aired
John identified himself on Monday as an unnamed person in the report who was accused of using 'racist language'.
However, the presenter said 'he had absolutely no recollection' of the incident and did 'not believe that it happened'.
But in a statement yesterday, the BBC said: 'This allegation - which involves an extremely offensive racist term being used in the workplace - was investigated and substantiated by the independent investigation led by the law firm Lewis Silkin.
'The BBC takes this upheld finding extremely seriously.
'We will not tolerate racist language of any kind and we told Banijay UK, the makers of MasterChef, that action must be taken. John Torode's contract on MasterChef will not be renewed.'
Hours before the announcement, BBC director general Tim Davie had refused to back John and said he expected 'action to be taken' over the allegation.
He delivered the remarks as the BBC released its annual report - an occasion overshadowed by controversies for the second year in a row.
Last year's was published amid the fallout over news presenter Huw Edwards who pleaded guilty to possessing indecent images of children.
Asked about the Torode racism row, Tim Davie said: 'The BBC in some ways are quite simple on this - if someone is found to not live up to our values we expect the independent company, Banijay in this case, to take action and report back to us on what they have done.
'These are not BBC employees, but we absolutely expect action to be taken.'
Tim added: 'I think a great programme that's loved by audiences is much bigger than individuals.
'It absolutely can survive and prosper, but we've got to make ing drinks sure we're in the right place in ness terms of the culture of the show.'
It had been alleged by a source close to John that he had used an inappropriate racial term during drinks after filming. The witness claimed he had apologised immediately and 'was mortified' and he 'didn't use the term as a slur'.
No one complained at the time but the incident was brought up during the inquiry into Gregg, they said.
On Monday, John said he had 'absolutely no recollection' of the incident and was 'shocked and saddened' by the allegation. 'I would never wish to cause anyone offence,' he added.
Responding to his sacking, John, who is married to actress and former Celebrity MasterChef contestant Lisa Faulkner, said: 'I'd hoped that I'd have some say in my exit from a show I've worked on since its relaunch in 2005, but events in the last few says seem to have prevented that.'
He said he 'had loved every minute' working on the show but it was 'time to pass the cutlery to someone else'.
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