The Academy told the Associated Press: "Things unfolded in a way we could not have anticipated. While we would like to clarify that Mr Smith was asked to leave the ceremony and refused, we also recognise we could have handled the situation differently."
A representative for the organisation did not immediately respond to Page Six's request for comment on the report.
Smith shocked the world when he took to the stage at the Oscars to slap Chris Rock after the comedian cracked a joke about Jada Pinkett Smith's shaved head.
A few minutes later, Smith returned to the stage to accept his Best Actor award, tearfully apologising to everyone but Chris Rock.
The Academy claims it asked Will Smith to leave the Oscars, but he refused. Photo / Getty Images
He did, however, issue a formal apology to the comedian the next day.
"My behaviour at last night's Academy Awards was unacceptable and inexcusable," he wrote in a statement on Instagram. "Jokes at my expense are a part of the job, but a joke about my Jada's medical condition was too much for me to bear and I reacted emotionally.
"I would like to publicly apologise to you, Chris. I was out of line and I was wrong. I am embarrassed and my actions were not indicative of the man I want to be. There is no place for violence in a world of love and kindness."
Many were left dismayed by how the Academy handled the situation, including Oscars co-hosts Amy Schumer and Wanda Sykes.
"I was like, 'How gross is this?'" Sykes, told Ellen DeGeneres during an appearance on her talk show.
"This is just the wrong message. If you assault somebody, you get escorted out of the building and that's it, but for them to let him continue, I thought it was gross."
