The comment came when he was talking about the racist abuse of players by trolls on social media to the Department for Digital, Culture, Media and Sport (DCMS) select committee.
Football Association chairman Greg Clarke has stepped down from the post after using "unacceptable words" for referring to black players.
Clarke, in a statement, said he was "deeply saddened" for the offence he had caused by using the term "coloured footballers".
The comments came when he was talking about the racist abuse of players by trolls on social media to the Department for Digital, Culture, Media and Sport (DCMS) select committee via video link in the Parliament on Tuesday.
According to a report in BBC Sport, during the parliamentary hearing, Clarke apologised for his words after being prompted to say sorry by MP Kevin Brennan.
Brennan said Clarke's language in reference to black players was the kind that did not encourage inclusion, while fellow committee member Alex Davies-Jones called it "abhorrent".
"My unacceptable words in front of Parliament were a disservice to our game and to those who watch, play, referee and administer it. This has crystallised my resolve to move on," said Clarke in a statement.
"I am deeply saddened that I have offended those diverse communities in football that I and others worked so hard to include," he added.
"We can confirm that Greg Clarke has stepped down from his role as our chairman," said an FA statement.
It further confirmed that Peter McCormick will step into the role as interim FA chairman with immediate effect and that the FA Board will begin the process of identifying and appointing a new chair in due course.
