Jay Daniel posted comments on the social media site saying it was acceptable to use a racial slur and that the Islamic faith ‘relishes’ in preaching hate.
The comments were also supported by the Blackpool North and Cleveleys Young Conservatives Association account on Twitter.
One tweet defended the use of the racial slur, comparing it to calling a British person a “Brit”.
They were strongly condemned by Conservative and Labour politicians as well as leaders from the Muslim Community.
Paul Maynard, MP for Blackpool North and Cleveleys said: “I condemn racism in all forms and those who use racist language have no place within the party. I have been made aware of an incident over the weekend.
“The individual responsible should be expelled from the party with immediate effect. Such behaviour will not be tolerated.”
Chris Webb, the Labour candidate for Mr Maynard’s constituency, took screenshots of the offensive tweets before they were taken down.
He said: “I was shocked and appalled to read disgusting racist and Islamophobic comments from a senior member of Blackpool North and Cleveleys Conservative party last night, which were also supported and liked by Conservative candidates in the upcoming elections.
“Their comments and hatred have no place in our community and they should be ashamed of themselves. Blackpool is a tolerant and accepting town and I don’t believe that these views represent the good people of our town.”
Abdul Hamid Qureshi, chairman of the Lancashire Council of Mosques, said the comments were “very distressing”.
He said: “I have lived here for more than 40 years and I am a British person, not Pakistani.
“We should not tolerate derogatory remarks from any community. It is not healthy.
“The phrase used has been a derogatory term for quite some time and is well understood by many to be deeply offensive so there is absolutely no excuse.
“By all means be critical but do not be derogatory.
“It is clear the person who has made these comments has not been exposed to any Muslims and he has such a bad understanding of Islam.
“I am glad the Conservative party has taken this seriously, however comments such as the ones made are a continuous struggle and fight for the Lancashire Council of Mosques.”
Mr Daniel’s tweets were later removed from his Twitter account, which now appears to be suspended.
A spokesman for Blackpool North and Cleveleys Conservative Association said they would continuing to investigate who was tweeting from the official account.
They added: “The association has been made aware of an incident overnight involving the use of racist language.
“Our local MP Paul Maynard has made clear he condemns racism in all forms, a view supported by the association.
“The individual involved in this incident will be expelled from the party. Their views do not reflect those of the Conservative party.
“This incident will be dealt with in the most serious manner possible. A clear message needs to be sent that this cannot and will not be tolerated.”
Mr Daniel could not be reached for comment.
A number of high profile politicians and commentators have reacted to the comments. Baroness Warsi called on Conservative chariman Brandon Lewis to take strong action.
She tweeted: “A racist slur I grew up with now being justified by a young Conservative.”
Left-wing political commentator Owen Jones also mentioned Mr Lewis and said: “Tory activists are posting gratuitous racism and he’s doing nothing about it. Don’t let him get away with it.”