Giuliana Rancic apologises for 'racist' slur live on air

Giuliana Rancic has made a heartfelt apology for her offensive comment about former Disney star Zendaya Coleman's hair on Fashion Police's Oscars special.

In a short E! News segment, the 40-year-old struck a serious note as she acknowledged that she "crossed the line" by saying Zendaya's hair looked like it smelled of "patchouli oil or weed".

That comment upset Zendaya and her fans, who accused the TV host of perpetuating a racial stereotype. Watch Giuliana's apology above – we'd love to know if Zendaya accepts it.

Zendaya, 18, posted a letter on Twitter yesterday slamming Giuliana's remark and explaining why it's so damaging.

Giuliana's co-host Kelly Osbourne has been dragged into the drama too, even threatening to leave the show over the backlash.

"I'm giving everyone involved 24-hours to make it right or the world will hear how I really feel. Contractually, I'm not allowed to speak now," Kelly tweeted earlier today.

"I did not make the weed comment. I do not condone racism, as a result of this I'm seriously questioning staying on the show!"

The situation has certainly blown up...do you think Giuliana was out of line? Has she redeemed herself? Let us know below.