The club issued a statement on Wednesday to say they are in the process of issuing ban notices to a group of 14 people from the supports group the Red and Black Bloc, including key leaders of the group, for a period of 18 months across all competitions.
The 14 people have also had their memberships suspended for 18 months.
The Wanderers have also threatened to shut down the active supporters area at home games if there's any further breach of the spectators' code of behaviour.
The statement stressed the bans were not issued by Football Federation Australia or the derby venue ANZ Stadium, but were club-enforced.
The club used CCTV footage both before and during the Saturday's Sydney derby at ANZ Stadium to identify the 14 individuals who took part in concealing, assembling and displaying the banner.
The banner depicted a blue-faced man - resembling Sydney FC coach Graham Arnold - having oral sex, before a crowd of nearly 45,000 during the match.
As part of the banning notices to be issued by the club, the Wanderers will also require the 14 involved to undertake a social inclusion program before their bans can be lifted.
“Following a thorough review of the incident on Saturday night including review of CCTV footage at the venue and examination of those involved and how they both concealed the banner’s entry into the venue, its construction within the bay and display during the match we have acted to remove them from our club,” Wanderers CEO John Tsatsimas said in a statement.
“This incident involved key leaders of the RBB who have shown no remorse for their actions of bringing our club and the game of football into disrepute and have continued to flaunt their disdain for the club and our diverse and inclusive membership family further on social media.
“As a club we have had enough and have put the entire group on notice.
"While the vast majority of the RBB are exceptional in their support and actions for this club we must remove all those who see themselves as bigger than the club they support.”
