Blatter made the claim in two separate television interviews this afternoon to provoke an angry response from around the football world.

While the 75-year-old later claimed he had been misunderstood his comments provided another chapter in a controversial reign as the head of FIFA.

Blatter has remained steadfast as the top of world football's governing body for 13 years, however, he was tonight branded "worryingly out of touch" by anti-racism group 'Kick It Out'.

Former England skipper Rio Ferdinand was also outspoken, describing the comments as "astonishing" on his Twitter page.

Asked if racism was a problem on the pitch, Blatter had earlier told CNN World Sport: "I would deny it. There is no racism, there is maybe one of the players towards another, he has a word or a gesture which is not the correct one, but also the one who is affected by that.

"He should say that this is a game. We are in a game, and at the end of the game, we shake hands, and this can happen, because we have worked so hard against racism and discrimination. "

He also said on Al Jazeera: "During a match you may say something to someone who's not looking exactly like you, but at end of match it's forgotten."

Kick It Out quickly condemned the comments and claimed they revealed a concerning lack of leadership from Blatter.

"These comments are worryingly out of touch," a statement read.

"Shaking hands to compensate for a racial slur is not what the game has signed up to, and trivialises the work of campaigns like Kick It Out, which has been in the vanguard of rooting out discrimination and unacceptable behaviour in our game for the best part of two decades.

"But leadership is needed to make headway. And comments like this don't help in the ultimate goal of kicking racism out football and making it a discrimination free zone."

During his online rant Manchester United defender Ferdinand contacted Blatter's Twitter page directly, writing: "@SeppBlatter your comments on racism are so condescending its almost laughable. If fans shout racist chants but shake our hands is that ok?"

He also wrote: "Tell me I have just read Sepp Blatter's comments on racism in football wrong... if not then I am astonished.

"I feel stupid for thinking that football was taking a leading role against racism.....it seems it was just on mute for a while."

Blatter's comments came on the same day that the Football Association charged Liverpool forward Luis Suarez with racially abusing Manchester United's Patrice Evra.

A racism investigation is also ongoing against England captain John Terry, allegations he strenuously denies, to further undermine Blatter's assertions.

"It's ironic that Sepp Blatter should come out and talk like that because we've worked hard to get FIFA to have anti-racism on the agenda," players chief Gordon Taylor told BBC Radio Five Live.

"It's very insensitive and inappropriate at this time.

"When as the president of FIFA he's got to be shouting from the top of the hills that it's unacceptable on the pitch."

Blatter attempted to douse the brewing controversy this evening by issuing a statement on FIFA's official website, where he pledged his commitment to stamping out racism from football.

"I would like to make it very clear, I am committed to the fight against racism and any type of discrimination in football and in society," the statement read.

"I have been personally leading this battle against racism in football, which FIFA has been fighting against throughout the past years through campaigns in all of our competitions such as the 'Say no to racism' campaign.

"I also know that racism unfortunately continues to exist in football, and I have never denied this. I know that it is a big problem in society, and that it also affects sport.

"I strongly believe that we should continue to fight all together against racism on and off the field of play, in order to eradicate this plague.

"My comments have been misunderstood. What I wanted to express is that, as football players, during a match, you have 'battles' with your opponents, and sometimes things are done which are wrong.

"But, normally, at the end of the match, you apologise to your opponent if you had a confrontation during the match, you shake hands, and when the game is over, it is over.

"Anyone who has played a football match, or a match in any sport, knows that this is the case.

"Having said that, I want to stress again that I do not want to diminish the dimension of the problem of racism in society and in sport.

"I am committed to fighting this plague and kicking it out of football."

Piara Powar, executive director of FARE, European football's anti-discrimination and exclusion campaign, was scathing about Blatter's remarks.

Powar said: "Sepp Blatter's comments about player-on-player racism are at best naive, and at worst, ignorant. They undermine the good work of both FIFA and a global movement against discrimination in football and in society.

"The leader of world football should not be commenting on an issue against the background of the two very high profile incidents under investigation in the UK, and the countless incidents of similar abuse that have taken place over the past year.

"To tell someone who has been abused because of their ethnic background, or sexual orientation or gender, that he or she should simply shake hands with the abuser is an insult in itself and displays a lack of understanding of FIFA's own rules of the game."

Premier League chief executive Richard Scudamore said racism does still exist in football and that they would continue to strive to eradicate it.

He told CNN: "Racism exists in the world, racism certainly still exists in football, albeit reduced.

"There are still issues, of course there are and we're not complacent about that, but I think it's a bit of a stretch to say it doesn't exist because it does."

Asked about the two FA investigations into allegations of on-pitch racism Scudamore added: "The English game has led and has been at the forefront of reducing incidents of racist behaviour, it's totally unacceptable.

"Everybody in the game in England understands it's totally unacceptable, we have that reputation and as far as I'm aware that reputation is still intact until proven otherwise.

"But of course the game will deal with whatever is thrown against it. There is no place for it in football let alone in England and we will continue to strive to eradicate it."