Ben Polis says his comments on Facebook were jokes between friends but has apologised for the racism row it has caused for AFL club Melbourne.

The Melbourne Football Club has severed its sponsorship ties with EnergyWatch and Mr Polis has been dumped as CEO of the company he co-founded in the wake of a series of racist and offensive remarks he made on Facebook.

Mr Polis said he was embarrassed by the remarks and said he was not racist.

“These were jokes between friends,” Mr Polis told AAP.

“Have they been taken out of context? Yes.

“Did I say them? 100 per cent.”

Mr Polis had posted remarks about Aborigines, Asians, women and Prime Minister Julia Gillard on his Facebook page.

Mr Polis said he was embarrassed by the remarks and he could understand how minority groups would feel offended by the comments.

“For that I am very sorry.

“I’m not a racist person.”