Martin Gallagher, 25, faces a charge under the Offensive Behaviour at Football Act.
Prosecutors claim Gallagher committed the offence at the Parkhead clash on September 10 which Celtic won 5-1.
The charges include the claim that he engaged in behaviour which may be likely to "incite public disorder".
This is said to involve the display of a banner that contained a "threatening and offensive remark".
The charge also states two "inflatable figures" were shown which were "fashioned in a threatening and offensive manner".
Gallagher, from Glasgow's east end, pleaded not guilty when he appeared from custody at Glasgow Sheriff Court.
He was represented by Neal McShane who requested his client was bailed with no special conditions.
The Crown requested that special bail conditions, including not to enter Celtic Park or to attend any regulated football games, were put in place.
Sheriff Alan Findlay granted bail and a trial was set for March next year.
Another Celtic fan has appeared in court charged with displaying an allegedly offensive banner and blow-up figures at last month's Old Firm match.