The 25-year-old plumber and clothing brand owner, from Wigan, reportedly used the n-word in a post on Instagram in 2019 that has since been deleted.
A statement from Danny, issued via ITV, said: “I’d like to take the time to apologise to anyone that may have taken offence to my inappropriate remark.
“I never meant anything malicious by this comment at all. I am not a racist person and it’s unacceptable language and ignorant.
“I meant no offence and feel like I have really learnt from my mistakes and will never use that word again.
“I am a kind loving person and hopefully you get to see that in the show.”
His statement came after his father Richard defended him earlier on Friday, saying there were “no racist intentions to this post” and that it had been a “mistake” on his son’s part.
He said: “Danny does not have a racist bone in his body and there were no racist intentions to this post. Although it was not done maliciously, it was a mistake.
“I absolutely apologise on his behalf for the offence this wording may have caused. That would never have been his intention.”
Thursday’s episode of the ITV2 dating show saw Danny take Kaz Kamwi on a date.
In an interview before entering the villa, he described the other male contestants as “like little sheep” and himself as an “alpha male”.
He said: “The guys need an alpha male and I feel like that’s me.
“The girls have Faye who says it how it is but the lads are all like little sheep.
“There is no way I would have sat back and let Hugo cry.”
Ahead of the return of the series, ITV published duty of care protocols for contestants, who will be offered a minimum of eight therapy sessions on their return home and will receive training on the impact of social media and “how to handle potential negativity”, as well as training on financial management.
Among the processes detailed for all contributors on Love Island are “comprehensive psychological support”, “detailed conversations on the impact of participation on the show” and a “proactive aftercare package”, ITV said.