WARNING: Clip contains extremely strong language
In the video, the man, who claims to be ex-Parachute Regiment, appears drunk as he claimed that the Japanese are a "vicious bunch of f****** c****."
Claiming that his uncle died in the River Kwai during World War II, he yelled: "You tortured him. Get yourself off the train, get yourself off the train. You’re nasty people, yeah? F*** off, get out of my country. Sayonara"
He then turned to the man who was filming the rant and asked where he was from. The passenger responded: "Does it matter, really?
"Are you going to start sorting everyone on the train, man, one by one? What have you got against the Japanese?"
To which the passenger responds by waving the wine bottle and saying: "Do you want some of that? No, because you don’t drink. You're a f****** Somalian c***."
The incident is believed to have happened on Tuesday evening on the Bakerloo Line around Queen's Park.
British Transport Police said a 52-year-old man was arrested on suspicion of a racially aggravated public order offence.
"An investigation was launched after we were made aware of a YouTube clip of a man using racist language on board a Bakerloo line train," police said.
It is the latest in a series of racist rants on London's transport system which have been filmed and uploaded to YouTube.
Jacqueline Woodhouse was jailed for 21 weeks for her Central Line invective, as she screamed at fellow passengers: "I used to live in England and now I live in the United Nations."