Athletic Director Tim Pernetti, who suspended Rice for three games and fined him $50,000 in December, said after showing the tape to reporters the coach would stay on the job, The (Newark, N.J.) Star-Ledger reported.
A compilation of scenes from Rutgers practices during the preceding three years, the 40-minute tape shows Rice using gay slurs to insult players, throwing basketballs at their heads, and shoving, kicking and grabbing them on the court.
In the video, Rice is shown calling a player an "(expletive) fairy" and "(expletive) faggot."
Pernetti told reporters he was showing them the tape because the school had learned ESPN was planning to air portions of it during the program "Outside the Lines."
Pernetti, who gave Rice a vote of confidence last month, reiterated Rice will remain as coach of the program barring any additional incidents, the newspaper reported.
The tape is believed to have been shot by former director of player development Eric Murdock, whose contract wasn't renewed last year, the report said.
Murdock's attorney, Raj Gadhok, said Tuesday Murdock plans to sue the school for wrongful termination, ESPN reported.
"Mr. Murdock was terminated for having complained of and reported illegal conduct by Mike Rice," Gadhok said.