Fiery Ramsay, famous for his use of on-air expletives, was involved in a shoving match with the contestant, who fell over and damaged his ankle.
The US contestant was sent to hospital and diagnosed with a sprain while Ramsay spent the rest of the day in discussions with lawyers trying to avoid a legal battle.
The scuffle occurred during filming of the US version of 'Hell's Kitchen' in Los Angeles, as part of a £1m deal with Rupert Murdoch's Fox TV.
Unlike the UK programme, the US contestants are not minor celebrities, but instead members of the public who want to make it as chefs. The winner will receive their own Hollywood restaurant worth more than $2m (£1.12m). The show is to be screened in the UK on ITV1 later this year.
Bosses at Fox TV are reportedly furious with Ramsay over the incident in Los Angeles. Ramsay's British spokeswoman last night issued a statement saying that it was a minor incident.
"One cast member did hurt his ankle on set and was taken to hospital. This is a minor matter and will not interfere with the rest of the production timetable. This is all we are advised to say at the moment."
Ramsay, who is behind restaurants such as Gordon Ramsay at Claridge's, has carved himself a media reputation as a foul-mouthed, bad-tempered yet very watchable TV star earlier this year in shows such as Channel 4's 'Ramsay's Kitchen Nightmares' and ITV1's 'Hell's Kitchen'.
One of the classic one-liners from the fiery chef included a stern dressing down for contestant Edwina Currie.
"One minute you're shagging our prime minister and now you're shagging me from behind," he told her.
He also verbally attacked rival chef Antony Worall Thompson and model Sophie Anderton, who he called a "two-faced bitch".
In his Channel 4 show 'Ramsay's Kitchen Nightmares', he invited another chef to "step outside" after a fight about a Caesar Salad.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.