Former NRL star Joe Williams has rejected calls for him to hand back a Citizen of the Year award, after a local Wagga Wagga councillor criticised his decision to remain seated during the national anthem on Australia Day.

Key points: Joe Williams refused to stand during national anthem on Australia Day at awards ceremony

Joe Williams refused to stand during national anthem on Australia Day at awards ceremony Mr Williams awarded Wagga Wagga city Citizen of the Year for work in suicide prevention

Mr Williams awarded Wagga Wagga city Citizen of the Year for work in suicide prevention Local councillor Paul Funnell criticised decision, said he should hand award back

The Wiradjuri man was named Citizen of the Year in the New South Wales city of Wagga Wagga for his work in mental health and suicide prevention.

But his decision not to stand for the anthem angered local councillor Paul Funnell, who told the Daily Advertiser the move was disrespectful and divisive and called for the award to be handed back.

Williams said he felt conflicted about attending the ceremony on Australia Day, which he said was a day of great heartache for Aboriginal people.

"It took a lot to go. I won't lie about that," he said.

"January 26 isn't, you know, a day of celebration and showing your face all happy like, for Aboriginal and Torres Strait Islander people.

"You know it's widely, widely mentioned that it's a day of mourning and definitely a day of sorrow for our mob right across the country."

Earlier in the evening during the national anthem, Williams said he decided to stay seated as a mark of respect to his Indigenous ancestors.

"I haven't stood for the national anthem for a number of years," Williams said.

"If I'm standing, I will remain standing, I won't make a statement by sitting down, I feel that's disrespectful.

"But if I'm seated, I'll stay seated, because a lot of my Aboriginal ancestors and Torres Strait Islander ancestors died, thousands and thousands were slaughtered around that date and I feel strongly, and I still do.

"I stand by it, I feel strongly that the current national anthem is not a representation of me as an Aboriginal and Torres Strait Islander person."

And he said he would not be giving the award back.

"One, because it highlights and recognises me for the hard work that I do around suicide prevention - something that I work with, as somebody with mental health issues, every single day," he said.

"So I won't be giving that award back.

"As I mentioned, it's opened the conversation around what the actual date and the anthem means to us as Aboriginal and Torres Strait Islander people."

The Mayor of the City of Wagga Wagga Councillor Rod Kendall and the General Manager Alan Eldridge issued a joint statement on the City of Wagga Wagga Facebook account late yesterday, distancing themselves and the council from Mr Funnell's comments.

"The comments made by Councillor Paul Funnell are his own and do not reflect the views of the City of Wagga Wagga or its staff," they said.