UEFA fined Real Madrid after its fans sang homophobic chants directed at Manchester City boss Pep Guardiola.
The abuse occurred during Madrid’s 3-1 victory over City in the Champions League play-off second leg in February.
UEFA has now announced that the Spanish champions have been fined €30,000 (£24,800) and will have a partial stadium closure suspended for two years.
“The UEFA Appeals Body has decided to fine Real Madrid CF €30,000.
“To order the partial closure of Real Madrid CF’s stadium (i.e. at least 500 adjacent seats) during the next match Real Madrid will play as host club, for the discriminatory behaviour of its supporters.
“Said partial stadium closure is suspended for a probationary period of two years, starting from the date of the present decision,” a statement read.
Real Madrid will face rivals Atletico Madrid in the next round of the Champions League.