Tiffany Trinh, who is of Vietnamese descent, is the woman at the centre of the incident which came to light after her sister posted on Instagram.
Trinh told the Sydney Morning Herald she felt the incident was a “joke about her race” and that she is launching a formal complaint to the NRL.
The Roosters completed their own investigation into the matter, which happened outside Beach Road Hotel in Bondi early last Thursday morning, and say Tedesco has no case to answer.
Trinh claims Tedesco approached while she was outside the hotel with a friend waiting for a lift home and said “squid games” to her before laughing with his group.
Tedesco and the club claim he was only discussing the TV show with his friends while in close proximity to Trinh.
The Roosters became aware of the allegation when Trinh’s sister posted about the incident on Instagram the following day.
“After we found out about the Instagram post we thoroughly investigated the matter,” Roosters chief executive Joe Kelly said.
“There was absolutely no interaction between James Tedesco with this group of people. We categorically deny that anything untoward occurred.”
Tedesco has played for Australia and New South Wales and was last month named the Dally M Captain of the Year.