Prince Harry issued an apology on Saturday after a video was released where he called an Asian army colleague a “Paki.”

The comment, published by News of the World, caused an uproar and was accused of making racist comments.

Prince Harry fully understands how offensive this term can be, and is extremely sorry for any offence his words might cause. However, on this occasion three years ago, Prince Harry used the term without any malice and as a nickname about a highly popular member of his platoon, said a statement from the prince's office at St. James's Palace.

Monday Prime Minister Gordon Brown remarked on the issue.

I think Prince Harry knows these comments were unacceptable,” he told GMTV.

Harry will be also facing an Army inquiry and Brown said the prince would be meeting his commanding officer soon to discuss the comments.