11:00 AM PT -- Urban Meyer says Ohio State is looking into legal action following McMurphy's story on Trevon Grimes.

OSU also released a statement on Tuesday ... saying "The Ohio State University unequivocally and vehemently disputes the unfounded allegations by Brett McMurphy. Any allegations of racism are outrageous and false."

"The university told McMurphy that we have found no evidence to support these allegations."

Ex-Ohio State coach Zach Smith is calling B.S. on reports of a "racially charged" altercation with a receiver at a 2017 practice ... and several players who witnessed the incident have his back.

'Stadium's' Brett McMurphy is reporting the incident between Zach Smith and former Buckeyes receiver Trevon Grimes that went down at a practice in 2017 ... and claims Urban Meyer tried covering it up.

Smith vehemently refuted the report on Tuesday, saying "Hahahaha hahahahaha - you want to talk about reaching!! Now I’m a racist and got into a fight? You really must be bored Brett."

Of course, McMurphy is the reporter who revealed the domestic violence scandal that later led to Smith's firing and Meyer's 3-game suspension.

"Youre about to lose whatever credibility you had left, if any." Smith added.

McMurphy says Ohio State confirmed an "interaction" between Smith and Grimes ... but denied any racial slur.

But, several current players have broken their silence in support of their former coach ... slamming the report and saying it's flat-out untrue.

"I witness the whole altercation and this didn’t happen," senior Johnnie Dixon tweeted. "You think a group of African American young men will sit there and let something like this happen? Say what you want but this isn’t true at all."

Senior Parris Campbell added, "There’s no way that anyone would believe this. NO WAY. This lie is just out of hand. I was present during the entire altercation and what’s said in this article NEVER HAPPENED."

"I can guarantee it. Crazy how social media gives people platforms just to spread nonsense."

Grimes later transferred to Florida.

"We all know why Trevon left OSU.. or that’s what he made it seem like, in all honesty OSU was prolly just to tough for the kid," Austin Mack tweeted.