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Australian Olympics Committee president John Coates has apologised for his comments in a leaked email, in which he used the term "sheltered workshop" when referring to an employee with cancer.
Mr Coates has told the ABC it was the wrong choice of words.
"Of course, it was the wrong choice of words," Mr Coates said in a statement.
"I know that because I've spent most of my adult life advancing the cause of disabilities and for which the Australian Paralympic Committee extended me its highest award — the Australian Paralympic medal. It's actually one of the things I'm proudest of.
"Yes, I got the email wrong and apologise."
His comments have been condemned by Federal Sports Minister Greg Hunt and Australian Paralympic Committee chief executive Lynne Anderson.
Earlier Mr Hunt said Mr Coates' exchange was not acceptable.
"The language … was inappropriate in the past, it's completely unacceptable in this day and age," he said.
"Language which flippantly casts aspersions on those with disability is not appropriate has no place in Australian public or private discourse."
Paralympic gold medallist and triple j presenter Dylan Alcott said Mr Coates' comments fed negative stigmas associated with disability.
"A sheltered workshop is where able-bodied people and disabled people work separately but it's used colloquially to belittle an able-bodied person saying you're acting like someone with a disability or you can't do a role," he said
"What it says is basically people with disabilities are second-class citizens we cannot do the work of an able-bodied person."
It comes as the AOC battles claims of a toxic culture, and Mr Coates is challenged for his presidency.
The commission's media director Mike Tancred has stepped aside pending an investigation into bullying.
Last night, the AOC board decided to appoint an independent committee to assess the bullying allegation against Mr Tancred and into the AOC's workplace culture.
AOC needs a 'good shake-up from the inside'
Four-time Olympian Loudy Wiggins — who was a former member of the Australian Athletes Commission, which advises the AOC board — said the body could do with a "good shake-up from the inside."
"In any organisation when there hasn't been change at the top then everything needs a shake-up and that can only be a good thing," she said.
"I wasn't aware of any goings on such as bullying or things like that, but perhaps could recognise a resistance to change.
"My role within the athletes commission was to bring up adversities that athletes felt within the Australian Olympic Committee, and it was very, very difficult to change things from a higher level."
On Thursday, former Olympian Danni Roche — who is seeking to oust Mr Coates — called for an external review into allegations of bullying at the AOC.
Ms Roche said there was a strong momentum for change.
"On the day I announced I was standing for the role [of president] I made a commitment to reset the philosophy and culture of the AOC," she said.
"The allegations of bullying and intimidation are of a very serious nature.
"Bullying and intimidation have no place in any workplace, let alone one that is responsible for promoting and upholding the spirit of the Olympic movement."
Topics: olympics-summer, sport, melbourne-3000
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