Published Monday, 29 October 2012
Tulisa shows off her nicotine patch as she steps out on stage (© Rex Features)
Gary caused uproar when he made the comment after the N-Dubz star criticised the song choice of his act Christopher Maloney during the Halloween-themed live show on Saturday.
"You do the same thing over and over again with him; it's not working", Tulisa told him.
The Take That singer replied: "Tulisa, I don't know what's offended me more: what you said or the fag ash breath."
Moments later Tulisa, who looked visibly shocked, interrupted host Dermot O'Leary and said:
"Just a note for Gary: lay off the red wine because I can really smell that as well."
I was speaking the truth and he didn’t like it. He didn’t have a good comeback so he resorted to making a childish comment.
Offering an apology on The Xtra Factor, Gary said: "Can I apologise to Tulisa; I mean it. You have the freedom to be as personal as you like to me for the rest of the series. Insult me."
Tulisa, who says she is an "open smoker", then told viewers that Gary once told her he "loved" the smell of cigarettes because it reminded him of the days when he used to smoke.
On Monday Jade Ellis, who became the fourth act to leave the talent show, spoke up in defence of her mentor.
She told Daybreak: "I don't even know where to begin. It's just something you don't say to a lady, especially on national TV."
Tulisa later revealed: "Gary knocked on my door after the show to offer an apology. I've accepted it."