The reported incident occurred during the last minute of the Group C fixture in Baku.
Shortly after the allegation was made, England head coach Matt Thorpe appeared on the match broadcast asking for the referee to approach, before instructing his players to leave the field.
Following Thorpe’s initial report, the referee told England’s coaching team that he had not heard anything.
One of Thorpe’s assistants then informed the referee that they were reporting alleged racist abuse and no longer wished to continue playing.
When another official approached to discuss the steps that would be taken after the game, the assistant reiterated that the players did not want to carry on.
The assistant was subsequently heard explaining that one of the players was distressed.
A tense exchange followed between the two coaching teams, with both sides insisting that their priority was protecting their players.
This is the inaugural edition of the U15 World Cup and Festival, featuring participants from 189 countries and territories.
Games use an eight-a-side format on reduced-size pitches, with each half lasting 20 minutes.
England are due to face Zimbabwe in their next fixture at 20:45 local time, or 16:45 GMT, on Monday. The Republic of Ireland will play Cambodia at the same time.
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