Steve Dickson has resigned from One Nation after being caught uttering sexual and racial slurs in Al Jazeera undercover footage filmed in a Washington DC strip club.
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Mr Dickson, a candidate for the Senate in Queensland, was forced from his position in the minor party after the footage aired on Nine's A Current Affair on Monday.
One Nation leader Pauline Hanson hit out at the footage - captured in an Al Jazeera investigation that has embroiled her party - but said she was shocked and disappointed by Mr Dickson's "unacceptable" behaviour.
Mr Dickson, who is second on the party's Senate ticket for the May 18 election, was filmed groping a dancer and saying "white women f--- a whole lot better, they know what they are doing" while Asian women don't.
He calls one dancer a "bitch" and urges another to "slide your hand on my d---".
In a statement issued on Tuesday, Mr Dickson said he was drunk that night and "deeply remorseful" for his actions.
"I would like to sincerely apologise for my behaviour that was aired on television last night as a result of the Al Jazeera covert operation filmed in the United States in September 2018," he said.
"The footage shown does not reflect the person I am. It shows a person who was drunk and not in control of his actions and I take full responsibility for allowing that to happen.
He said he had informed his wife about his visit to the strip club at the time and she was standing by him.
Senator Hanson said strip clubs were legal businesses and were popular with many men "but Steve's language and behaviour was unacceptable and does not meet my expectations, nor the greater public's expectation, of a person who is standing for public office".
"Steve Dickson yesterday offered his resignation from all positions within the party, which I have accepted," she said.
Senator Hanson said she was not impressed but that she would not make further judgments about Mr Dickson's character.
"Steve is a family man ... He is deeply upset by this. I'm not going to judge him any further. It is a family matter," she said.
Mr Dickson will remain on the Senate ticket in Queensland, with ballot papers printed and early voting having started on Monday. But the party is unlikely to secure enough votes to have two senators elected from the state.
The Al Jazeera investigation, which involved the creation of a fake gun lobby group, last month revealed Mr Dickson and senior party figure James Ashby travelling to the United States to seek funding from the National Rifle Association.
Mark Latham, One Nation's leader in New South Wales, said Mr Dickson had no future in politics after the strip club footage went to air.
"The cowboy behaviour and approach you have seen from Steve Dickson is not appropriate in any political party, but if we can continue to do what we are doing in in New South Wales, I do hope we have a future," he told Seven's Sunrise.
- SMH/The Age