It came days after a controversial verdict was handed down over the death of Indigenous teenager Elijah Doughty in Western Australia.

Protesters in Melbourne's CBD are demonstrating the sentence handed down over the death of Indigenous teenager Elijah Doughty. Courtesy Seven Network.

A 56-year-old man, who cannot be named for legal reasons, ran over and killed the 14-year-old in Kalgoorlie in August last year.

Rallies, including a protest that brought Melbourne to a standstill on Friday, have been held around Australia after the man was acquitted of manslaughter and received a three-year sentence for the lesser charge of dangerous driving causing death.

Lilley's clip opens with an Aboriginal boy lying with his limbs splayed and features Lilley in blackface as his S.mouse character from Angry Boys.

Thousands took to social media to voice their disgust at the content of the clip and Lilley's timing.

Creator of the ABC's Cleverman series Ryan Griffen tweeted: "In a time where this country is mourning the death of a child run down this cheap excuse of comedy drops. The only joke here is Chris."

One Twitter user posted that Indigenous people were "still mourning the horrific Elijah verdict" and to have Lilley post the video and then block critics was "truly vile".

It is not the first time Lilley has been accused of racism.

Last month, the Maori Television board pulled his series Jonah from Tonga, with New Zealand's Pacific Peoples Minister Alfred Ngaro saying it perpetuated negative stereotypes.

Lilley appeared to delete his social media accounts before returning to Twitter on Saturday night to defend his actions.

"My social media pages are run for me to give fans pics or clips from previous tv shows," he tweeted.

"A fan-made remix of a song from Angry Boys made in 2009 was posted recently.

"It is not connected in any way to current news stories.

"I apologise for any hurt caused by the misinterpretation."