The Tottenham star has also been handed a £100,000 fine.
Bentancur was filmed on Uruguayan TV making derogatory remarks about South Koreans in a reply to a question about Spurs captain Son Heung-min.
The FA confirmed the lengthy suspension ahead of Spurs' clash with Manchester City in their first game back after the international break.
An FA statement read: "An independent Regulatory Commission has imposed a seven-match suspension and £100,000 fine on Rodrigo Bentancur for a breach of FA Rule E3 in relation to a media interview.
"It was alleged that the Tottenham Hotspur midfielder breached FA Rule E3.1 as he acted in an improper manner and/or used abusive and/or insulting words and/or brought the game into disrepute. It was further alleged that this constitutes an "aggravated breach", which is defined in FA Rule E3.2, as it included a reference - whether express or implied - to nationality and/or race and/or ethnic origin.
"Rodrigo Bentancur denied this charge, but the independent Regulatory Commission found it to be proven and imposed his sanctions following a hearing. Its written reasons for these decisions can be seen below."
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It will rule Bentancus out of several key fixtures including a home EFL Cup quarter final versus Manchester United.
But he will still be eligible to play in the Europa League during the ban.
After the remark attracted immediate backlash on social media, Bentancur quickly issued an apology to his teammate.
"Sonny brother," Bentancur wrote on Instagram.
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"I apologise to you for what happened, it was just a very bad joke.
"You know I love you and I would never disrespect you or hurt you or anyone else! I love you, brother!"
Five days later, Son revealed he had spoken with Bentancur and accepted his teammate's apology.
"I've spoken with Lolo (Bentancur)," Son said in a post on Instagram.
"He made a mistake, he knows this and has apologised. Lolo would not mean to ever intentionally say something offensive. We are brothers and nothing has changed at all.
"We're past this, we're united, and we will be back together in pre-season to fight for our club as one."
The 27-year-old has featured in all but two of Tottenham's 17 fixtures across all competitions this season, meaning he will be a massive loss for Ange Postecoglou over the seven-game stretch.
In Bentacur's absence, Yves Bissouma looms as the likeliest replacement in the defensive midfield role.
With Bissouma's pending elevation to the starting line-up, it could spark a domino-like effect in Postecoglou's thinking.
Teenage talent Archie Gray stands a chance of becoming the back-up defensive midfield option having already played in the position this season.
Although the versatile 18-year-old has largely played at right-back when he has featured this term, he is no stranger to that role as he featured in the role for Leeds United in the Championship last term.
However, if Postecoglou views Gray as the back-up defensive midfielder, it places Djed Spence as the next option at right-back should Pedro Porro be injured.
Spence returned to the matchday squad after recovering from a groin injury and was on the bench for Tottenham's 2-1 loss to Ipswich last Sunday.