Waleed Aly has issued an on-air apology after making a joke about Steve Price during an episode of  The Project.

After making fun of the host’s height, Aly took the high road and apologised to Price live on air during Monday night’s episode.

The gaff came about during a story about a two-year-old boy from the US who had gone missing after using his toy tractor to visit a fair. It was then that Aly said to Price: “The tractor in that story looks like your tractor.”

The lighthearted quip drew laughter from panellists Carrie Bickmore and Peter Helliar, with Price also joining in on the fun.

“Aw, short jokes so early!” replied Price with a smile.

“Pretty funny though,” said a laughing Bickmore.

But 10 minutes later, Aly chose to set everything behind him and clear the air.

“Before I made a joke at your expense, it was a short joke you’re right … not good enough by me, sorry about that,” Aly said to Price.

“No, that’s OK,” responded Price. “I’ve been putting up with it my whole life.”

“I know, and I never make those jokes and I know you personally don’t actually care,” replied Aly.

“But after you said it (was a short joke), yeah no, that was pretty crap.”

“You didn’t need to say that, thank you,” said Price.

“No, I think I probably did,” said Aly.