Brazil's sports justice tribunal also fined Gremio 50,000 reais ($20,000) after a group of fans of the club from the southern city of Porto Alegre chanted insults and made monkey noises at Santos goalkeeper Aranha during a cup clash on August 28.
Gremio had condemned the fans involved and launched an anti-racism campaign, with the players taking to the field in their last league game holding a banner urging supporters to "say no to racism."
Separately, one young female supporter clearly seen yelling "macaco" (monkey) at shot-stopper Aranha was suspended from her job and her behavior sparked a storm of outrage on social media.
A spokesman told AFP the tribunal's five judges unanimously made the decision to turf out Gremio, which club chairman Fabio Koff has appealed on behalf of the four-time cup winners, who are now coached by former Brazil coach Luiz Felipe Scolari.
There were also stiff penalties for the officials of the game, which Santos won 2-0.
His assistants were handed 60-day suspensions.
