A prominent gay rights activist has said that even though Australian swimmer Stephanie Rice's anti-gay slur on Twitter was offensive, it did not warrant the "hysterical" reaction it got.

Gary Burns, who has previously taken legal action against a series of high profile Australians over what he claimed were homophobic comments, said that 22-year-old Rice was being persecuted unfairly.

"What I am concerned about is that she has lost her Jag sponsorship, which is really unfair, because there are people out there that are on this witch-hunt to destroy this girl," the Sydney Morning Herald quoted him as saying.

"I deal with people who I believe publicly vilify homosexuals ... but what Stephanie Rice did was make a mistake. She apologised for that mistake, but I now believe people are using her as a wedge.

"Yes, it is offensive, but it is not vilification, it is not hatred," he added.

Burns, who said he had never met Rice, said the swimmer had "since seen her wicked ways" and he claimed her apology rectified the situation immediately.

"In reference to Ms Rice, I believe she made a mistake," he said.

"I am glad she rectified that by apologising and I think, apart from taking her down to Martin Place and whipping her, there is nothing else we can expect from her.

"I think people need to take a Bex powder, a warm lemon tea and have a good lie down," he dded. (ANI)