Jimmy Barnes' songs will no longer be played at Reclaim Australia's rallies after the rocker said he did not support the nationalist group.
Reclaim Australia said it was "deeply saddened" by Barnes' wish but it would stop using songs by the Cold Chisel singer at its rallies.
According to the Sydney Morning Herald, fellow Australian singer John Farnham has called the group's use of songs including his famous 'You're the Voice' "disgusting".
The ABC said Cold Chisel's 'Khe Sanh' was played at at least one of Reclaim Australia's rallies, which sparked clashes between anti-Islam and anti-racist protesters over the weekend.
Barnes took to his Facebook page to say he did not support the message of the rallies.
The protest group then said on Facebook the Australian icon had mistakenly believed incorrect reports that Reclaim Australia was a racist group.
"This is not true... inevitably at our rallies we unfortunately have some fanatics and we have tried our best to have them removed," it said.
Through his publicist, Barnes declined to make any comment beyond that already posted on social media.
In his earlier post, he wrote that it had come to his attention that certain groups had been using his voice and songs as their anthems at rallies.
"None of these people represent me and I do not support them... I only want to say the Australia I belong to and love is a tolerant Australia. A place that is open and giving," his post said.
"It is a place that embraces all sorts of different people, in fact it is made stronger by the diversity of its people."
Reclaim Australia held a series of rallies around the country over the weekend.
In Melbourne, police were forced to use pepper spray as anti-racism protesters clashed with nationalists.
Federal coalition MP George Christensen caused controversy by addressing a rally in Mackay, Queensland.
Former federal MP Pauline Hanson also addressed a rally in Rockhampton, saying she was "against the spread of Islam".