SUNDERLAND boss Paolo Di Canio said it is "stupid and ridiculous" for him to be described as a racist after his appointment prompted the resignation of club executive David Miliband.
Mr Miliband quit his role as vice-chairman and non-executive director of the English premier league side in protest at the Italian's "past political statements" in which he has said he was "a fascist, not a racist".
He has previously described his fascination with former Italian leader of the National Fascist Party, Benito Mussolini.
But former Celtic star Di Canio, who was appointed after the dismissal of Martin O'Neill, said in a statement: "I don't have a problem with anyone. I don't know why I have to keep repeating my story, to be defending myself on something that doesn't belong to me every time I change clubs.
"Talk about racism? That is absolutely stupid, stupid and ridiculous."
While Di Canio's statement did not make clear whether he refuted having fascist views, Sunderland said it was insulting to the Italian and the football club's integrity to accuse him of being "racist or having fascist sympathies".
But anti-facist and anti-racism groups raised concerns.
Unite Against Fascism's joint national secretary, Weyman Bennett, said Di Canio's political views were an insult to the people of Sunderland who died fighting fascism.
Mr Bennett added: "If he wants to be a manager and wants to be a public figure, he needs to make it clear he accepts these views are inappropriate.
"Football has made great strides in opposing fascism. It's simply not true that you can say you agree with fascism and that's okay. It's something that isn't acceptable."
Piara Power, the director of anti-racism group Football Against Racism in Europe, who described Di Canio as the "first fascist coach in the English Premier League", demanded the former Swindon manager clarified his political beliefs.
He said: "When there is a rise of intolerance and there is a coach in the most watched league globally, who hasn't clarified or wanted to renounce his fascist views during his time in the UK, it is a worrying time."
The former Italian international, whose club career has also included stints at Juventus, Napoli, AC Milan, Lazio, Charlton Athletic, West Ham and Sheffield Wednesday, has spoken openly in the past about his far-right leanings.
The GMB trade union cited his political views when it withdrew its sponsorship of Swindon Town after he was appointed its manager in 2011.
Six years earlier he was banned for giving a straight-arm fascist salute to Lazio fans after scoring in his side's 3-1 win over bitter rivals Roma. Justifying his action after the game he said: "I am a fascist, not a racist."
Alessandra Mussolini, the former dictator's granddaughter, praised Di Canio, saying "How nice that Roman salute was. It delighted me so much - I shall write him a thank you note."
Hardcore Lazio fans, known as Ultras, have a longstanding reputation for extreme right-wing politics and racist chanting. .
In his autobiography Di Canio wrote "I think he [Mussolini] was a deeply misunderstood individual. He deceived people. His actions were often vile.
"But all this was motivated by a higher purpose. He was basically a very principled individual."
Di Canio has a tattoo with DVX on his shoulder, the symbol of the former Italian dictator.
The Italian, who quit as manager of npower League One side Swindon in February, was the subject of a Football Association investigation last year after striker Jonathan Tehoue claimed he was racially abused.
Di Canio was cleared, although Swindon apologised to the player.
In his statement Di Canio added: "Something can happen many years ago but what counts is the facts. My life speaks for me.
"Of course it hurts me because people try to take your dignity and that is not fair."
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