South African FIFA committee member and anti-apartheid activist Tokyo Sexwale on Friday criticised Sepp Blatter's denial of racism in football and slammed England for keeping John Terry as captain.

Blatter, the president of FIFA, caused global outrage this week when he said there is no racism on the pitch and that any racial abuse between players should be settled with a handshake.

"It was rather unfortunate of Blatter to utter such statements. We have had countless cases of racial slurs being spewed by players on the field of play," said Sexwale, who sits on the football governing body's anti-racism committee.

"You can't mitigate racist slurs with a handshake. No handshake can repair this damage," he added.

"Such statements are damaging. Its consequences cannot be known."

But he said he does not believe Blatter is racist.

"Mr Blatter is well known worldwide as a champion against racism and discrimination," he said, crediting the FIFA president with the decision to give Africa the 2010 World Cup.

"It is therefore completely unthinkable to refer to such a man as a racist."

Blatter's comments came as Liverpool's Uruguayan international Luis Suarez was charged by the English Football Association (FA) with using racist language against Manchester United's French international Patrice Evra.

England captain Terry is also facing a police and FA investigation over allegations he hurled racist abuse at QPR defender Anton Ferdinand.

Sexwale lashed out at England for keeping Terry as captain.

"The most worrisome is the case involving Chelsea captain John Terry where he is being investigated for racial remarks he made against (Ferdinand)," he said.

"John Terry is also the captain of the English national team. It is not helpful for any side to have honoured him with the captain's armband whilst the indiscretion against another player is still so fresh in the mind."

He said he hoped Blatter's remarks would raise awareness of racism in football, particularly in European associations.

"Great players like Pele and Eto'o have suffered racism in football. So it is there," he said.

"I have had conversations with both players in my capacity as member of the anti-racism committee and they told me painful stories."

Sexwale, who is also South Africa's housing minister, called for tough action against players found guilty of racism.

"Punishment should involve suspension. Paying a fine alone is not enough. These people are paid a lot of money. Hit them where it hurts the most," he said.

Blatter, who has faced calls to quit over his remarks, apologised Friday for the "unfortunate comments" but said he would not resign.

On Thursday, FIFA posted a picture on its web site of Blatter giving a hug to Sexwale, who spent 12 years in the same prison as Nelson Mandela for conspiring to overthrow South Africa's white-minority government.