Luiz Felipe Scolari's men have been banned from taking part in the cup competition any further after an alleged racist incident involving their supporters
Gremio have been expelled from this year's Copa do Brasil in the aftermath of their fans' racial slurs against Santos last Thursday.
Luiz Felipe Scolari's men suffered a 2-0 loss in the round-of-16 first leg, leading to their supporters aiming their frustration at Santos goalkeeper Aranha.
Gremio fans allegedly aimed racial insults at the 33-year-old throughout the encounter and a Brazilian sports tribunal has now opted to take action against the Porto Alegre outfit.
The tribunal unanimously voted 5-0 in favour of Gremio's exclusion from the competition following the incident. On top of their exclusion from the competition, the four-time Copa champions were also fined €18,000.
Gremio insisted last week that it would identify and punish any fans found to have racially abused Aranha during last week's match. They have the option to appeal their penalty.
This latest case of racial abuse comes after Gremio were forced to pay a fine of over €26,000 earlier this year when fans racially taunted an opposing player during a home match.