Pavlich, who retired at the end of last season after 353 games for Fremantle, was calling the Dockers and Essendon game for Fox Footy, which Channel 7 aired on Sunday afternoon, when Walters "stole" a ball from a pack early in the last quarter.

Fellow football commentator Gerard Healy was trying to recall the mercurial moment, but instead of calling out Walter's name, he said Brad Hill.

"Brad Hill's steal was amazing," Healy said, before Pavlich interjected.

"Michael Walters it was, but he did grow up in Midland," Pavlich said, before he could be heard chuckling. "I'm not suggesting that..." Pavlich tries to continue before Healy cuts him off.

"Bring it back Pav," Healy pleads.

Pavlich may have been trying to be "funny", but his reference to Walters coming from Midland, which is one of Perth crime hotspots is bound to come under close scrutiny - after the gaffe was spotted by a keen 6PR listener.

Respected elder Robbert Eggington said Pavlich's comment wasn't "funny".

"It's not a joke nor is it acceptable because it reinforces stereotypes 90 per cent of people have about Aboriginal people," he said.

"It's subtle racism about young Noongar people in Midland.

"It's subtle racism when it comes from anyone, but when it is a football commentator it is the worst kind of subtle racism."

Len Collard from the School of Indigenous Studies at the University of WA disagreed it was "casual racism".

"I think it's more about someone snubbing their nose down at the suburb," he said.

As the AFL Player's Association President Pavlich - talking about the Racism It Stops with Me campaign last year - emphasised the role players had in fighting racism.

"It's important that all AFL players acknowledge the influential role they play in the community and harness this united power to encourage positive behaviour," Pavlich said.

"Hopefully by watching the Racism. It Stops With Me videos at every AFL match, spectators will be reminded that there is absolutely no room for racism in our game or in society."

Pavlich has achieved nearly every imaginable honour in his 17-year career, but his on-air gaffe wasn't one of them.

He has six All-Australian jumpers, six club champion awards, three Glendinning Medals from Western Derby clashes with the Eagles and has been the Dockers' leading goalkicker eight times.

The AFL Players' Association, the Fremantle Dockers, Fox Footy and Matthew Pavlich have been contacted for comment.