Premier Barry O'Farrell has dismissed claims he made a racial slur against an indigenous member of the NSW parliament as "ridiculous".
Mr O'Farrell has been accused of racially vilifying opposition family and community services spokeswoman Linda Burney, the first Aborigine elected to NSW parliament, in question time on Tuesday.
A spokesman for Mr O'Farrell told AAP on Wednesday the government won't be "dignifying that with a response."
"It's all a bit ridiculous," he said.
After Ms Burney accused Community Services Minister Pru Goward of having lost the confidence of her department in question time, the premier stepped in and fired back.
"The minister for community services, the member for the Southern Highlands, has achieved every position in her life on merit. You can't say that," he said.
Ms Burney later said her indigenous background was a possible reason for Mr O'Farrell's comment.
"If the premier has an inherent racial element to his questions, I can't prove that," she told reporters.
"All I can say is he's made imputations about my capacity, my reputation, on three occasions."
Opposition Leader John Robertson has accused Mr O'Farrell of making a racial slur and has called on him to make a public apology.