Allegations the leader of the Isle of Wight Council has a collection of golliwogs in her house has prompted a police investigation into blackmail and harassment, it's claimed.
Cllr Lora Peacey-Wilcox has denied having the offensive items in her home.
There have been calls for her to step down over an image she is said to have posted online.
Speaking to Isle of Wight Radio, Cllr Peacey-Wilcox said:
"I am aware of the allegations. I can confirm I have no such items in my house.
"I should mention that this relates to an allegation of harassment and potential blackmail of me; the matter is now being looked into by the police."
Hampshire Constabulary has told Isle of Wight Radio it cannot confirm it is investigating.
It's alleged Cllr Peacey-Wilcox posted an image purporting to show the items in her house on her Facebook page.
The image allegedly posted by Cllr Peacey-Wilcox
It first came to the attention of Cllr Geoff Brodie, the chairman of the Isle of Wight Council, in November.
He said he expected her to step down and has sought action to protect the council's reputation.
Joe Robertson, Isle of Wight Conservative leader, said:
"The photos appear to show offensive content posted from the Council Leader's social media account. The dolls on display are widely regarded to be racist.
"The Leader needs to come clean and fully explain the content and context of the photos and I urge her cabinet and Alliance colleagues to ensure she does so. If the Leader continues to hide behind a denial without a proper explanation, I do not see how she can continue as leader of a modern local authority with responsibility to all residents regardless of ethnic background."
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