"The Club has learned that one of its players, Jose Baxter, was found to have traces of a banned substance in his sample following a routine Football Association out-of-competition drug test," United said in a statement on their website (www.sufc.co.uk).
"The player has informed the Club that he engaged in no wrongdoing involving any banned substance."
Sheffield United's season finished after they lost 7-6 on aggregate to Swindon in the League One playoff semi-final on Monday.
The club confirmed that they have suspended Baxter, who began his career at Premier League Everton, "pending further findings".
The news came two days after Hull City midfielder Jake Livermore, who has made one appearance for England, was suspended by his club and the FA after testing positive for cocaine in a random drug test.
(Reporting by Sam Holden, editing by Ed Osmond)
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