Suspended MP Rupa Huq's description of Chancellor Kwasi Kwarteng as "superficially" black was "racist", Keir Starmer has said.
Ms Huq, the MP for Ealing Central and Acton, offered a "sincere and heartfelt" apology to Mr Kwarteng over her "ill-judged" comments at a party conference fringe event.
She was administratively suspended yesterday after it emerged that she had told delegates: "If you hear him on the Today programme, you wouldn't know he's black."
The Labour leader refused to say if she would be allowed back into the party after the row, saying it was for the party's independent complaints process.
"What she said was wrong, it was racist, and I'm very pleased the Labour Party acted as swiftly as it did," Mr Starmer said.
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"We've now got an independent process that kicks in and the outcome will be for them.
"But I'm very pleased that the Labour Party under my leadership acted very, very swiftly in that particular case."
Mr Starmer said it was not his decision to suspend Ms Huq - as complaints are now handled independently - but said it was one "I absolutely agree with".
At an event in Liverpool, Ms Huq was asked to reflect on Mr Kwarteng's position as the UK's first black Chancellor.
She said: "I'm sorry, if I was not making myself understood.
"Superficially, he's like a black man. But again, he's got more in common... if you look at again, it's about Jo Cox and More in Common.
"If you look at the current he went to Eton, I think he went to very expensive prep school all the way through the top schools in the country.
"If you hear him on the Today programme, you wouldn't know he's black. So my point is that it's kind of what you do."
The audio was published by right-wing blog Guido Fawkes shortly before Keir Starmer's speech.
Ms Huq later tweeted: "I have today contacted Kwasi Kwarteng to offer my sincere and heartfelt apologies for the comments I made at yesterday’s Labour conference fringe meeting.
"My comments were ill-judged and I wholeheartedly apologise to anyone affected."
Tory party chairman Jake Berry had raised "serious concerns" in a letter to Mr Starmer and demanded Ms Huq's suspension.