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The 34-year-old is said to have told Racing that he could not play in their Champions Cup semi-final clash with Leicester Tigers as he had a family matter to attend to in Argentina.
His club gave him the time off only to see photos later circulate on Twitter and Instagram of him enjoying time with PSG stars including Sweden striker Ibrahimovic.
In a statement, Racing said: "Following the publication in the media of photographs showing Martin Castrogiovanni with Paris Saint-Germain footballers this weekend at a hotel in Las Vegas, while the entire Racing squad was in Nottingham to contest a European Cup semi-final, Racing 92 have decided to suspend the player as a precautionary measure prior to launching legal proceedings."
The Italian was also joined by PSG players Marco Verratti, Javier Pastore and Salvatore Sirigu. PSG have already wrapped up the Ligue 1 title earlier this season and had been given some time off by manager Laurent Blanc.
In Castrogiovanni's absence, Parisian side Racing beat Leicester to reach the final where they will face Saracens on May 14.
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