The decision was posted to DOSB’s website almost 24 hours after the incident, Reuters reported.
Moster, who is the sporting director of the German cycling federation, was overheard shouting a derogatory slur — a reference to Middle Eastern people — to German cyclist Nikias Arndt during the event.
Moster later apologized for the remarks, blaming “the heat of the moment,” and said he was not racist, Reuters reported.
But DOSB President and Tokyo delegation leader Alfons Hörmann said that Moster had “violated” Olympic values.
“We remain convinced that his public apology for the racist remarks he made yesterday is sincere. With this derailment, however, Mr Moster violated the Olympic values.
“Fair play, respect and tolerance are non-negotiable for [team Germany],” Hörmann said.
The International Olympic Committee welcomed the decision to send Moster home, adding that his comments had “no place” at the games, Reuters reported.