British designer, John Galliano has been suspended by couture house Christian Dior following reports of anti-Semitic insults by the designer during a drunken incident at a Paris café.

In a statement on Friday, Sidney Toledano, Chairman and Chief Executive Officer of Christian Dior Couture said, Christian Dior has an unequivocal zero-tolerance policy regarding anti-Semitism and racism.  

The New York Times however reported that Galliano's lawyer Stéphane Zerbib denied the accusations, maintaining that There was never the slightest comment of a racist or anti-Semitic connotation.

Although the designer has been released from police custody late Thursday, his suspension from the luxury brand will remain in effect till the conclusion of investigations.

Head designer at Dior, Galliano is regarded as one of the most influential fashion designers of the 21st century. Galliano joined Dior as a creative designer in 1996, replacing Italian designer Gianfranco Ferré.

 Through his spectacular creations and fashion shows, Galliano created buzz in the industry and many consider him responsible for the company's haute couture status.