Berlin: UEFA on Monday fined Bayern Munich 10,000 euros (US$13,774) for an offensive banner and ordered them to close part of their stadium for the Champions League quarter-final against Manchester United.
European football's governing body punished holders Bayern after their fans displayed a banner carrying the text "Gay Gunners", aimed at opponents Arsenal during the Champions League last 16 second leg 1-1 draw in Munich on March 11.
Bayern progressed to the quarter-finals 3-1 on aggregate having won the first leg 2-0 in London.
They have drawn David Moyes' United in the last eight with the first leg at Old Trafford on April 1 and the return in Munich on April 9.
In a statement, UEFA's Control and Disciplinary body said they have also ordered the closing of a section of Bayern's Allianz Arena for the Munich leg.
Bayern have also been warned that a repeat offence will carry a 50,000 euros fine and a future match to be played behind closed doors.
"We regret the incident from the game against Arsenal and distance ourselves from the discriminatory banner. FC Bayern will never accept something like that," said Bayern chairman Karl-Heinz Rummenigge.
"Unfortunately, we have to accept UEFA's punishment.
"We will have those responsible arrested and check with the appropriate legal people whether we can claim for damages."