The FA has apologised to two players after new evidence showed sacked England's women's boss Mark Sampson made remarks which were "discriminatory on the grounds of race".
An independent barrister ruled Sampson made unacceptable "ill-judged attempts at humour" on two occasions, to Eniola Aluko and Drew Spence.
Katharine Newton said despite this, she did not believe he is racist.
She also concluded Aluko was not subjected to "a course of bullying".
Newton's initial report, completed in March, had cleared Sampson, but the new evidence led to her investigation being resumed.
And a report of the reopened investigation, which says Sampson had difficulty judging boundaries around banter, was released as FA bosses and Aluko faced a parliamentary inquiry on Wednesday.
'Bordering on blackmail' - Key points from hearing
- Aluko, who has been capped 102 times, said she had not received payment of an £80,000 settlement fee in full from the FA.
- "[FA chief executive] Martin Glenn said if I wrote a statement saying the FA were not institutionally racist he would release the second tranche of the money. I felt that was bordering on blackmail," she said. Glenn denies this.
- The Chelsea striker said she had felt "isolated" during the case, and reacting to the new report, added: "I'm a human being and I feel relieved. It suggests it was kind of all worth it going through the trouble and having it vindicated."
- Aluko said she was "astonished" at an email from FA chairman Greg Clarke, in reply to a document about the case from the Professional Footballers' Association, which read: "I've no idea why you are sending me this. Perhaps you could enlighten me?"
- The Nigeria-born striker accused England goalkeeping coach Lee Kendall of speaking to her in a fake Caribbean accent.
- Aluko said there had been "an agenda to protect Mark Sampson and an agenda to protect the FA's reputation".
- In a written submission to the inquiry, Aluko said she understood a black actress was hired to role-play "bad behaviour and a selfish attitude" with players - which she believed was meant to represent her.
- Committee member Jo Stevens MP told FA chairman Greg Clarke: "I've never heard such shambolic evidence about the governance of an organisation."
What does the FA say?
In a statement, FA chief executive Glenn said he and his organisation wanted to "sincerely apologise" to Aluko and Spence.
"Based on new evidence submitted to independent barrister Katharine Newton, she has now found that they were both subject to discriminatory remarks made by an FA employee. This is not acceptable," he said.
He admitted there was "much to learn from this episode" and the FA needed a better way to support whistleblowers.
Glenn said the organisation's ambition had "always been to find the truth and take swift and appropriate action if needed".
He said it was "regrettable" Aluko did not take part in the Newton's initial investigation as this would have enabled Newton to complete her investigation sooner.
Aluko explained she had not participated because she felt the first FA internal inquiry had been flawed.
Sampson was sacked as England women's boss last month after evidence of "inappropriate and unacceptable" behaviour with female players in a previous role.
He had earlier been cleared of wrongdoing by the internal inquiry, and Newton's initial report, following discrimination allegations made by England players, including Chelsea striker Aluko.
Sampson, 35, has said his conscience was clear, and denied being a racist.
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