The match was goalless when, in the 14th minute, a disputed decision lead to a heated altercation on the touchline. In the aftermath, Basaksehirs assistant coach Pierre Webo was shown a red card with the Romanian 4th official apparently identifying him using racist language, describing the former Cameroon international as black or negro.
The Istanbul players left the pitch, followed by those of PSG.
A wait of two hours ensued to see if the match could be resumed only for the decision to be made to finally abandon it. The match will now be replayed on Wednesday evening with a different set of match officials taking charge.
PSG have already qualified for the knock-out stages of the tournament, but need to win to ensure they will be one of the seeded teams.
The row erupted after Webo asked repeatedly why a racist term had been used to identify him. Senegal forward Demba Ba became involved and remonstrated with the official that such language would never be used against a white guy, and PSG decided to follow them off the pitch as a gesture of solidarity.
Later several of their players posted social media messages expressing their support for their Turkish opponents.
Politicians also became involved in the row. Turkeys President Recep Taysin Erdogan tweeted his strong condemnation of the racist remarks, with Roxanna Maracineanu, Frances sports minister, who was born in Romania herself, applauded the players actions.
Normally UEFA rules state that any team refusing to play a Champions League game forfeits the match automatically and also faces a 250,000 fine.
However, in this case they have decided to make an exception and will replay the match.
Dutch and Polish officials will take charge of Wednesdays match.