Jess Varnish was subjected to "inappropriate and discriminatory language" by former British Cycling technical director Shane Sutton, an internal investigation has found.
Varnish alleged in April that Sutton had told her to "go and have a baby" and that her "ass" was too big in the wake of her being dropped from the Great Britain Cycling Team.
British Cycling launched an investigation into the claims, but Sutton denied them and had been confident of being exonerated.
However, a statement released by British Cycling on Friday read: "Following an internal investigation, the British Cycling board has upheld an allegation made by Jess Varnish that former Technical Director Shane Sutton had used inappropriate and discriminatory language.
"The board wishes to put on record its sincere regret that this happened."
Sutton was suspended and later resigned as technical director after Varnish's claims were followed by further allegations of discriminatory behaviour towards para-cyclists.
In conjunction with UK Sport, British Cycling subsequently commissioned a separate, independent review of the culture within the organisation, the findings of which are due to be published later this year.
British Cycling's statement added: "The findings of the investigation will help the development of the organisation alongside the independent review into the culture of the World Class Programme, jointly commissioned by British Cycling and UK Sport, and led by Annamarie Phelps.
"The full text of the board's report has been made available to the independent review. No further comment will be made until that review has reported its findings."
Sutton, who is from Australia, joined British Cycling in 2002 and was Sir Dave Brailsford's right-hand man during Team GB's all-conquering performances at the Beijing 2008 and London 2012 Olympic Games.
He took over as technical director after Brailsford resigned in 2014 and has been credited with laying the foundations of Britain's success on the track at Rio 2016.
Sutton also worked with Team Sky from 2010 to 2012 and was key mentor to Sir Bradley Wiggins, helping him win the Tour de France in 2012.
As well as the independent review, British Cycling is currently the subject of a UK Anti-Doping investigation into "allegations of wrongdoing".
Senior British Cycling figures have also been called to attend a parliamentary hearing into the organisation's granting and policing of therapeutic use exemptions.