Officials from Asian campaign groups have criticized Toby Keith after the country singer allegedly made a "racist hand gesture" at a Nobel Peace Prize party in Norway.

The singer was in Oslo, Norway on Thursday to see U.S. President Barack Obama handed the prestigious honour, and after the ceremony he joined Hollywood star Will Smith and musician Wyclef Jean for an impromptu rap performance at an after party.

But the trio's performance of Rapper's Delight by Sugarhill Gang has been steeped in controversy after footage from the event surfaced online, and appeared to show Keith pulling back one of his eyes when Smith rapped the word "yellow."

A representative for Keith has dismissed the criticism, telling TMZ.com, "Nobody at the party thought Toby was out of line."

But a spokesperson for the Asian American Justice Center has slammed the singer, saying: "Toby Keith embarrassed himself and his country, denigrated the Noble Peace Prize and offended Asians and Asian Americans by using a crude, racist hand gesture."

While a rep for the Media Action Network for Asians adds, "By doing this, he is telling his Asian fans 'you don't matter, you're not on my radar.'"