The Griffith Waratahs have withdrawn from the 52nd annual West Wyalong rugby league knockout after a player made racist remarks on Australia Day.

In a surprise decision, Griffith Warathas have withdrawn from the 52nd annual West Wyalong rugby league knockout following an incident which occurred on Australia Day.

Former West Wyalong player Cooper Louden was videoed making racist remarks which drew widespread condemnation.

"Hey, n*ggers, if it wasn't for the white fellas, you'd still be throwing f*cking sticks," Mr Loudon allegedly said in the video.

"If it was up to me, you'd be in a f*cking cage getting bashed.

The videos have since been removed.

While the West Wyalong club made a statement at the time saying the player did not represent the, the Waratah players recently made a unanimous decision to withdraw.

Waratahs president Craig Wheeler said the club is standing behind their players decision.

"Being the president of the 'Tahs, I've got to be proud and stand by the boys' decision.

"In the end they are the one that are running out onto the field. 

“I don't get too involved in remarks from spectators but the boys have made a decision and they've stuck by it.”

In response to the incident West Wyalong has arranged for cultural education for their players and will host First Nations leaders and rugby league identities Nathan Blacklock, Ron Gibbs and Christian Heffernan, the son of Immortal Arthur Beetson, at the Knockout.

A new knockout draw is yet to be released.

The Waratahs confirmed that pre-season matches will be arranged for March.