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Luis Suarez has been charged by the Football Association with racially abusing Manchester United defender Patrice Evra.
The FA announced the charge following a month-long investigation into the claims against Liverpool's Uruguayan striker.
An FA statement said: "The FA has today charged Liverpool's Luis Suarez following an incident that occurred during the Liverpool versus Manchester United fixture at Anfield on 15 October 2011."
It continued: "It is alleged that Suarez used abusive and/or insulting words and/or behaviour towards Manchester United's Patrice Evra contrary to FA rules. It is further alleged that this included a reference to the ethnic origin and/or colour and/or race of Patrice Evra."
Liverpool said Suarez will plead not guilty to the charge.
A club statement said: "The club this afternoon received notification from the Football Association of their decision to charge Luis Suarez and will take time to properly review the documentation which has been sent to us.
"We will discuss the matter fully with him when he returns from international duty, but he will plead not guilty to the charge and we expect him to request a personal hearing. Luis remains determined to clear his name of the allegation made against him by Patrice Evra. The club remain fully supportive of Luis in this matter."
Evra made his claims immediately after the October 15 match and was quoted as telling French TV station Canal Plus: "There are cameras, you can see him [Suarez] say a certain word to me at least 10 times."
Both players spoke to FA officials during the investigation and there have been suggestions that Suarez was unaware that what was acceptable in Uruguay was viewed as racist in Europe.
Suarez told Uruguayan media earlier this month: "There is no evidence I said anything racist to him. I said nothing of the sort. There were two parts of the discussion, one in Spanish, one in English. I did not insult him. It was just a way of expressing myself."
Fifa president Sepp Blatter has said football does not have a problem with racism on the field, and any incidents should be settled by a handshake.
The Football Association is probing two cases of alleged racism in England.
"There is no racism [on the field], but maybe there is a word or gesture that is not correct," Blatter told CNN. "The one affected by this should say 'this is a game' and shake hands."
The 75-year-old later said his comments had been misunderstood.
"I would like to make it very clear, I am committed to the fight against racism and any type of discrimination in football and in society," Blatter said in a statement.
"I have been personally leading this battle against racism in football, which Fifa has been fighting through campaigns such as Say No to Racism."
The Swiss added: "My comments have been misunderstood. What I wanted to express is that, as football players, during a match, you have 'battles' with your opponents, and sometimes things are done which are wrong.
"But, normally, at the end of the match, you apologise to your opponent if you had a confrontation during the match, you shake hands, and when the game is over, it is over."
In his original interview, Blatter had appeared to downplay the extent of racism in the modern game.
Asked whether he thought racism on the pitch was a problem, Blatter told CNN World Sport: "I would deny it. There is no racism.
"There is maybe one of the players towards another - he has a word or a gesture which is not the correct one.
"But the one who is affected by that, he should say 'this is a game'. We are in a game, and at the end of the game, we shake hands, and this can happen, because we have worked so hard against racism and discrimination."
Blatter's comments provoked immediate reaction, with England and Manchester United defender Rio Ferdinand tweeting: "Tell me I have just read Sepp Blatter's comments on racism in football wrong....if not then I am astonished."
Speaking to BBC Radio 5 live, former Tottenham Hotspur striker Garth Crooks was equally critical of Blatter's remarks.
"Clearly Sepp Blatter is a man who's never suffered from racism," he said. "I'm shocked and somewhat dismayed."
Piara Powar, executive director of the Football Against Racism in Europe network, also condemned Blatter's comments.
"You just don't expect the world leader of football to be coming out with comments that seem ill-thought-out, [and] insensitive," he said.
"To say that something as serious as racial abuse between players can be settled with a handshake is incorrect and not the sort of thing footballers at an amateur level, at a pro level - at any level - will want to hear from football's leader."
The remarks from the Fifa president, who has led football's world governing body since 1998 and was re-elected this year, come on the same day as Liverpool striker Luis Suarez was charged by the FA for alleged racist comments towards Manchester United's Patrice Evra.
The accusation is denied by the Uruguayan and his club say he will plead not guilty to the FA charge.
England and Chelsea captain John Terry is also facing FA and police investigations following allegations that he used a racist slur towards QPR defender Anton Ferdinand in a match at Loftus Road in October. He denies the claim.
