Malky Mackay has issued an apology for sending text messages that were "disrespectful of other cultures".
However, Mackay has now insisted that the two messages flagged up during a League Managers' Association (LMA) investigation were part of "friendly text message banter".
The LMA said in a statement issued on Mackay's behalf: "These were two text messages sent in private at a time Malky felt under great pressure and when he was letting off steam to a friend during some friendly text message banter.
"The LMA does not condone in any way any potential breach of equal opportunities laws but would also point out that out of over 10,000 text messages and 70,000 documents produced over a long period of time it may not be a complete surprise that some inappropriate comments can sometimes be made by employees, like Malky, working under great pressure in highly charged situations."
Mackay has denied allegations that he made any homophobic or sexist comments and is said to be "very concerned about seriously inaccurate and misleading reports" to the contrary.
"There are incorrect and damaging suggestions that he sent a whole host of offensive and unpleasant messages that are simply not true and which give a grossly distorted and unfair view of Malky's involvement in this matter," the LMA added.
The accusations came to light when Mackay's former employers Cardiff submitted a dossier to the Football Association outlining the alleged misconduct in a move that apparently cost him the Crystal Palace job.