"I hope he has gone home," Blatter told reporters after helping to launch a new FIFA initiative with Britain's Kick It Out anti-racism campaign.
"It's embarrassing for the whole of the football family. It's embarrassing for the Olympic Games and I support the fact he has been sent home.
"The FA of Switzerland has to deal with this case and then I am sure it will be transmitted to us because it is an international match and of course he should be banned."
Swiss team chief Gian Gilli said on Monday that Morganella had "gravely insulted and violated" the dignity of South Korea after his team's 2-1 defeat a day earlier.
Blatter, speaking at Wembley before Britain's women faced Brazil in their final group match in the women's football competition, pledged FIFA's full support to battle all forms of racism in football and his sentiments were backed by English FA chairman David Bernstein.
Bernstein was speaking a day after the FA charged Manchester United defender Rio Ferdinand over a comment on Twitter which referred to Chelsea's Ashley Cole as a "choc ice".
Bernstein said there would be "tough consequences" for all types of poor behaviour in the future.
"We must continue to be tough as a regulatory body on sanctioning and disciplining inappropriate behaviour," he said.
"Wherever possible we must bring incidents of discriminatory abuse to charge and all participants must know the consequences of their actions.
"This goes for the twittersphere as much as on the pitch, in the stands and in the recuitment processes across football."
