A former McLaren employee on Tuesday said he no longer believes that Ron Dennis is either racist or homophobic.
27-year-old Peter Boland, sacked as McLaren Group CEO Dennis' private aircraft steward, had brought the case to a Southampton employment tribunal, claiming he was unfairly dismissed amid false rumours he was gay.
He had also claimed that Dennis once said he needed to wash his hands because he had been "shaking hands with Arabs all day".
Dennis defended the latter charge as a misinterpretation of his mild obsessive-compulsive nature, attending the hearing this week to address "lies that have damaged my reputation".
Discussions between the parties' legal teams subsequently took place, and Dennis announced that Boland had made a "complete and unequivocal withdrawal and unreserved apology".
"Mr Boland accepts that I have never said or done anything either racist or homophobic," Dennis is quoted as saying by BBC News.
Boland told the tribunal: "I feel great remorse for the upset that I now realise I have needlessly caused to him, to his family and to his colleagues."