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In a statement released to ESPNcricinfo Rashid not only confirmed Azeem Rafiq's recollections of the incident, but pledged to participate in any official investigation aimed at stamping out what he called the "cancer" of racism.
Vaughan, the former Yorkshire and England captain, revealed earlier this month that his name appeared in the Yorkshire report into Rafiq's allegations of racism at the club. Vaughan admitted that Rafiq alleged he had noted the inclusion of four players of Asian heritage in the Yorkshire side playing at Trent Bridge and responded: "There are too many of you lot; we need to do something about it."
Vaughan continues to deny those allegations.
But Rashid's intervention is important. Not only is he the third member of that Yorkshire team to confirm he heard Vaughan making the comments - Rana Naved-ul-Hasan, the former Pakistan seamer, has already backed Rafiq's version of events - but, as a highly respected and senior member of the England team, his words carry some weight.
Rashid has long been reluctant to be drawn into the debate and, even now, has asked for "privacy" and space to focus on his cricket. But it could well be that his observations have a devastating effect on the reputation and future career of Vaughan. He has already been stood down from his Radio 5 Live programme, the Tuffers and Vaughan Show, by the BBC.
Rashid's statement in full reads: "Racism is a cancer in all walks of life and unfortunately in professional sports too, and is something which of course has to be stamped out.
I wanted to concentrate as much as possible on my cricket and to avoid distractions to the detriment of the team but I can confirm Azeem Rafiq's recollection of Michael Vaughan's comments to a group of us Asian players.
"I'm encouraged by the fact that a Parliamentary Committee seems to be trying to improve the situation, whether that's holding people accountable or getting changes made at an institutional level. These can only be positive developments. I will of course be more than happy to support any official efforts when the time is right.
"For now though, these matters are of an intensely personal nature and I will not be commenting on them further. I ask you to respect my privacy and allow me to focus on my cricket.
"I want to thank the ECB, the fans and especially my teammates for all of their support. We didn't get the result we wanted in this World Cup, but I hope that the unity of our dressing room and the leadership of our captain [Eoin Morgan] will propel us forward to achieve what we deserve in the future."
Vaughan and Gary Ballance have both confirmed that they were named in the independent report, with Ballance admitting to using the word "P**i* in relation to Rafiq. Further revelations are expected when Rafiq gives evidence in front of the Department for Culture, Media and Sport (DCMS) select committee on Tuesday.
Yorkshire's handling of the investigation into allegations of institutional racism made by Rafiq has come in for sustained criticism, with the ECB stripping the club of its right to host international fixtures and a number of sponsors severing ties. Former chair Roger Hutton, former chief executive, Mark Arthur, and director of cricket, Martyn Moxon, were called to appear before the DCMS committee.
With Moxon now unwell - he is suffering from a stress-related illness - Wayne Morton, the former England physio who now oversees the provision of medical treatment at Yorkshire, is to take his place.
Lord Patel, Yorkshire's chair, responded to Rashid's comments in a statement issued by the club.
"I am aware of the recent statement from Adil Rashid, and I welcome his courage in speaking up at what is a difficult and distressing time for all those who love this Club and the sport of cricket," Patel said.
"It is essential that those who have experienced or witnessed racism, discrimination and abuse are able to come forward to share their experiences. I have been in touch with Adil personally today so that we can talk through the issues as soon as he is ready and able."