A stoush between a Queensland law student and Labor frontbencher Terri Butler over claims of a "racist smear" is bound for court after he bluntly rejected her apology as a "sham" and vowed to press ahead with a $150,000 defamation lawsuit.

Ms Butler announced at the weekend she had apologised to 25-year-old Calum Thwaites after repeating on national television allegations levelled against him in a case brought under controversial section 18c of the Racial Discrimination Act.

Mr Thwaites was one of three Queensland University of Technology students accused of causing offence in a series of Facebook posts about an Indigenous-only computer lab. Mr Thwaites vehemently denied he used the phrase "ITT niggers" and the case against all three men was thrown out of the Federal Circuit Court this month.

On Q&A, Ms Butler implied the allegations had never been tested and said of Mr Thwaites' denials: "He would say that, wouldn't he?" Mr Thwaites elected to sue for damages of up to $150,000, claiming he had been traduced as a racist, bigot and perjurer.