REPUBLIKA.CO.ID, NEW SOUTH WALES -- New South Wales Police have apologised after their video of a terrorism training exercise drew the ire of Palestine's most senior diplomat Down Under.

In the video, released to media by the force last week, officers dressed in Palestinian-style garb and pretended to stab commuters at Sydney's Central Station.

Mock hostages were forced to stand with their hands on the window of a train, holding up an Islamic State flag. The station was closed while the drill took place.

Izzat Abdulhadi, the head of the general delegation of Palestine to Australia, said many people had been left "really upset" by the video.

Speaking on SBS Arabic24, NSW police's multicultural media liaison officer Tarek Al-Issawi apologised for any offence caused.

A composite image of two men holding weapons, with their faces covered.

"There surely was no intention in any way to defame or insult any part of the community, and if some people felt insulted it was unintentional," he said.

"NSW Police, of course apologise, as it apologised to many who called and objected to this and we admitted we are wrong and we apologised for it."

Outcry in Palestinian community

The exercise was designed to train frontline police to respond to a so-called "active armed offender" incident.

Mr Abdulhadi said the headdress — known as a keffiyeh — was a symbol of Palestinian heritage and culture.

"It touches their own value system and their feelings and emotions so they were really upset by using this to stimulate or give an image about Palestinians as if they are terrorists," he said.

Prominent members of Australia's Arabic community have vented their frustrations.

Izzat Abdulhadi, the head of the general delegation of Palestine to Australia arrives at Parliament House in Canberra.

In a statement, NSW Police said they did not intentionally stereotype.

"In relation to Exercise Pantograph, there was a significant operational need for the officers involved to have their identity concealed," a spokesperson said.

"The apparel the officers were wearing was purchased from an Army disposal store a number of years ago as jungle and desert-coloured camouflage."

However, Mr Abdulhadi was not convinced.

"I'm not sure if it is 100 per cent an apology or whatever but we appreciate the clarification from the New South Wales police. I think it is a good step in the right track and I hope in the future it will not be repeated. This is the most important thing," he said.

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