Maxi Biancucchi, the cousin of Lionel Messi, has reported Olimpia president Marcelo Recanate to Fifa for use of racist language.
The winger has been linked with a move to Qatar in the new year, which has reportedly angered his club's supremo, leading him to make some scathing remarks.
"We've sent the letter and all documents. Fifa will receive them on Thursday," Biancucchi's lawyer Ricardo Scarane told Radio 970 AM.
"Maxi is aware of all that was said. He has been made to feel very hurt by Marcelo's remarks and is fulfilling his contract for the love the fans."
The course of action taken by the 28-year-old comes after Recanante said: "Maximiliano Biancucchi is a disrespectful, irreverent Argentine.
"He's a black Argentine, a disrespectful midget. He earns $25,000 (€19,500) per month and he is an employee of Olimpia. I'm telling Mr. Biancucchi he won't play for Olimpia until December."