Victoria Police says it has counselled police officers involved in distributing a racist stubby holder at the Sunshine police station, in Melbourne's west.

The stubby holders made reference to a mudfish, which is a derogatory term for Africans.

It also had the slogan "Whoever says Sunshine brings happiness has never worked here".

Acting Deputy Police Commissioner Andrew Crisp says he was only made aware of the incident last week and was extremely disappointed and annoyed.

"The matter has now been referred to the professional standards command to review what took place at the time and to explore whether there's other options that should in fact take place in regards to those members," Acting Deputy Commissioner Crisp said.

"It's an investigation and at this stage we have to just let it run its course.

Commissioner Crisp says the incident undermines the work being done by police to deal with racism.

"You cannot in your right mind as a member of Victoria Police actually believe that producing a stubby holder with what's on them is right in any way," he said.

"Victoria Police has come a long way in tackling racism in this organisation and again the majority of our members do a great job."