A Defense Ministry spokesman said the lance-corporal, whose name is being withheld, had been stripped of his rank and pay.
The ministry also said it was still investigating a second solider who filmed the training scenes with his camera-phone.
The army instructor was filmed last year as he told a recruit to imagine he was in the Bronx borough New York City.
"You're in the Bronx, a black van pulls up in front of you and three African-Americans get out and start really insulting your mother," the video shows the instructor telling a recruit. "Every time you pull the trigger I want to hear you shout 'mother....' very loudly."
As the recruit fires his weapon, he repeats the obscenity each time, as the trainer tells him to yell louder.
German television broadcasters aired the 90-second video clip over the weekend, weeks after it had already been posted on the Internet.
<b style="">"Contradicts ethics"