Khalil Cavil (pictured), 20, took to Facebook to describe what happened at the Saltgrass Steak House on Saturday

A Texas waiter has admitted making up a racist note calling him a 'terrorist' that he claimed was left on a check.

Khalil Cavil, 20, claimed he was stiffed out of a tip on a $108 bill at the Saltgrass Steak House in Odessa, Texas over the weekend after the customer wrote on his receipt: 'We don't tip terrorist.'

Now Cavill has admitted fabricating the episode, which resulted in the customer being barred from the establishment.

Cavil told local paper the Odessa American: 'I did write it. I don’t have an explanation. I made a mistake. There is no excuse for what I did.'

He no longer works at the streak house.

It comes after the restaurant carried out an internal investigation, and Cavil was found to have forged the note himself.

'After further investigation, we have learned that our employee fabricated the entire story,' Saltgrass Steak House COO Terry Turney told the Odessa American.

'The customer has been contacted and invited back to our restaurant to dine on us. Racism of any form is intolerable, and we will always act swiftly should it occur in any of our establishments. Falsely accusing someone of racism is equaling disturbing.'

Saltgrass officials said Cavil no longer works at the restaurant, but did not reveal how they determined it was a hoax.

A picture of the note shows Cavil circled his own first name, which means 'friend' in Arabic.

He posted a picture of the customer's receipt, who had scribbled at the top: 'We don't tip terrorist'

Cavil, who is black and was born in the US, took to Facebook to describe what happened at the Saltgrass Steak House on Saturday, writing: 'At the moment I didn't know what to think nor what to say, I was sick to my stomach.'

The server who is heading off to Dallas Baptist University in the fall, said in the post last week that he wanted it to serve as an example.

'I share this because I want people to understand that this racism, and this hatred still exists. Although, this is nothing new, it is still something that will test your faith.'

'So to all the haters out there, keep talkin', [you're] only helping me step into my destiny!' adds Cavil's post, which garnered thousands of likes and shares.

Terry Turney initially defended Cavil saying that the restaurant will not tolerate bigotry or abuse from customers in a statement last week.

'We stand by and support our employee. Racism of any form is unacceptable and we have banned this customer from returning to our restaurant.'