The statement, prepared by representatives from the student body and teachers, acknowledges the impact that the use of the words can have.
"Recently there has been an incident when a teacher read the 'n.....' word in delivering a piece of educational material. We understand that these actions were not intended to be harmful," the statement reads.
"However, we recognise that racist acts are defined by their impacts, not by their intentions. An historically violent and racist word used by a person who cannot reclaim it holds pain and violence no matter the context.
"As a school, we give nothing to racism. What used to go unchallenged is no longer accepted. The staff of Lynfield College have been advised to verbally censor racial slurs should they appear in educational material.
"Some may think that it has more impact and delivers a stronger message of the educational material if we do not censor the word. However, we need to consider that even if censorship might reduce some of the educational impact, the wellbeing of students is paramount.
"What may be felt as educational impact to you, is condensed generations of pain to others. Our school values the wellbeing of our students and staff immensely, which is why we are creating this change."
The statement says that the school is "continuing to support the student and staff member involved" and does not detail if the teacher is facing further sanctions.
The Herald has contacted the school for comment.
Echoing comments from the Race Relations Commissioner, the school encouraged its community to speak out on racism.
"We would like to remind everyone to continue to be anti-racist. Speak up against injustice, and do not let your actions contribute to oppression," it said.
Meng Foon earlier praised the student's bravery, telling him: "Thank you for being brave and thank you for holding your ground on what is not right in today's society".