The Collingwood Football Club has formally denied allegations of racism by their former head of First Nations' strategy against chief executive Craig Kelly, calling them "objectionable, irrelevant, vague [and] embarrassing".

On Friday, Collingwood filed documents in the Federal Circuit and Family Court defending Kelly, who was alleged by the club's former head of First Nations strategy, Mark Cleaver to have made slurs towards Indigenous Elders and culture in documents filed in July.

The Magpies have criticised the claims in their documents, denying all 11 complaints lodged by Cleaver, including that they were bullied and that there was unlawful discrimination.

The club have also called for the case to be struck out.

"The Respondent denies that it has engaged in any contraventions alleged in the Claim or that it is liable for any of the loss and damage alleged," the filing said.

Cleaver, a Palawa person, alleged in court documents that Kelly - a former Collingwood premiership player - suggested putting a live possum in a room with Indigenous players, called an Aboriginal Elder a "dumb old b****", and failed to fulfil obligations and financially compensate a First Nations organisation.

Documents detail how Cleaver alleged Collingwood had breached multiple laws, including acts pertaining to racial and disability discrimination.

Furthermore, they alleged they had suffered "hurt, humiliation and distress", as well as financial distress, in the wake of their sacking in May this year.

Collingwood, through their legal representation Henry Skene, of Seyfarth Shaw Australia, said Cleaver was dismissed by the football club "solely because it was satisfied that he had engaged in misconduct".

This included Cleaver allegedly making false statements about Kelly telling them to "go throw a Boomerang", and denying they had contacted the media, "despite having done so".

Cleaver said Kelly asked how a presentation to players was connecting back to the club's broader strategy, with Kelly allegedly stating: "This needs to be a boomerang, and it needs to come back, unless you hit someone with the boomerang, but then you've done it wrong because that's the whole point, they're meant to come back."

In response, Collingwood contends that "this was untrue; this was not the true substance of his complaint about this incident; the true substance of his complaint was in entirely different terms; [and] this characterisation was likely to be damaging to the reputation of the CEO and the club".

In another incident, documents from Cleaver allege Kelly picked up a Marngrook that was on the desk and said, "I don't give a f**k what you put in there, put this shit in there" before forcefully throwing the Marngrook at Cleaver.

The documents allege the Marngrook hit Cleaver, humiliating them and causing them pain because of the paraesthesia as a result of their multiple sclerosis.

In another incident, after Kelly said how he cared "about our Indigenous people", Indigenous Elder Aunty Carol Thorpe allegedly turned and said, "you don't say 'our', we don't belong to you".

Kelly later admitted he did not know who Aunty Carol Thorpe was and according to the documents asked: "Who was that old bird?"

The documents filed on behalf of Cleaver also detail how the club met with Indigenous support group Dardi Munwurro on March 18, with the organisation claiming it hadn't been paid $500,000 that club sponsor CGU had promised from the Do Better report.

Kelly allegedly asked of Dardi: "Are they trying to extort us for money? These people do that."

Alan Thorpe, who is married to Aunty Carol, is the chief executive of Dardi Munwurro and has stated the issue around the financial aspect has now been resolved.

However, in the wake of the scandal, Dardi have ended their partnership with Collingwood.

Cleaver was suspended on full pay on May 1 after receiving a letter from the club president, before being terminated on May 6, in the hours after Maurice Blackburn lawyers wrote to the club saying it would fight the claims on Cleaver's behalf, having made a complaint also to the AFL's integrity unit six weeks earlier.

"The allegations in this case call into question whether (or not) the Collingwood Football Club has learned anything from its multiple self-inflicted racism scandals," Maurice Blackburn principal Daniel Victory said in a statement.

Judge Karl Blake has ordered the parties to enter mediation, but not before October 9, after a hearing was initially set down for August 27.