Though the photo was rumored to be photoshopped, a staff member at the school paper, The Crimson White, confirmed to BuzzFeed the photo was real and that the student was removed from the sorority.
A school spokeswoman declined a request for comment, citing federal privacy laws.
Recently, a Snapchat began making the rounds purporting to show a picture from the University of Alabama's Chi Omega sorority with the caption, "Chi O got NO niggas!!!!!"
The university has launched an investigation into the Snapchat, and the sorority member was dismissed from the organization, a Chi Omega spokeswoman said in a statement.
"What was expressed is absolutely reprehensible and completely inconsistent with Chi Omega's values and policies," Whitney Plumpton said. "Chi Omega took swift disciplinary action in accordance with the organization's policies and procedures."
After circulating online, the Snapchat story was picked up by the school paper, The Crimson White, who reported that two black women actually did pledge the sorority on bid day.
They also reported that every sorority extended bids to black women.
The school's president, Judy Bonner, also sent a university-wide email condemning the "offensive racial language" seen in the picture.
"We are all extremely disappointed when any student uses language that is disrespectful or offensive to any segment of the UA community," Bonner wrote. "We are especially sad that this incident occurred on a day that was an exciting and happy one for the young women who participated in fall recruitment."
This is far from the first time the school has encountered racial tensions within its Panhellenic program; last September, four sororities refused to allow black students to pledge, and they have long resisted integrating their members.
Hundreds of students protested the school's segregated sororities last September. At the time, a black student hadn't pledged a non-black sorority at the school in a decade.
A closer look at the Snapchat photo reveals the text on the image may have been altered to add the racist language.
Total Frat Move has removed the article that alleged the Snapchat was Photoshopped.
A spokeswoman for Chi Omega, Whitney Plumpton, declined a request for comment.