Basaksehir substitute, Demba Ba could also be seen protesting on the touchline, while PSG players including Neymar and Kylian Mbappe appeared to be demanding an explanation.
Demba Ba asked the official: “Why, when you mention a black guy, do you have to say this black guy?”
Istanbul players then staged a walk off the pitch in the 23rd minute in protest, with PSG players following.
Basaksehir posted a message on their Twitter account which read: “NO TO RACISM #Respect.” The message was retweeted by PSG.
UEFA had initially said the match would restart with a different fourth official “after consultation with both teams”.
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But Basaksehir insisted that their players have had enough for one night.
The match is now slated to restart on Wednesday at 5.55pm with a new team of officials. It will kick off from 14th minute, the moment players walked off the field.
A second UEFA statement read: “Following an incident at tonight’s UEFA Champions League match between Paris Saint-Germain FC and Istanbul Basaksehir FK, UEFA has – after discussion with both clubs – decided on an exceptional basis to have the remaining minutes of the match played tomorrow with a new team of match officials.
“A thorough investigation on the incident that took place will be opened immediately.”
PSG said in a statement “all forms of racism go against the values held by Paris St Germain and the club’s chairman, staff and players”.
It added: “For more than 15 years Paris St Germain has led the fight against discrimination and continues to work to eradicate it in all forms. The capital club is today one of the most committed sports clubs striving to end all forms of violence and discrimination.”