BBC Director-General Tony Hall has apologized and said that a mistake was made after a news report with a racial pollution was sent out last month.
The N-word was used in full in a report on a racially charged attack in Bristol, broadcast by Points West and the BBC News Channel on 29 July.
The BBC first defended the use of the slur, after more than 18,600 complaints were made.
Lord Hall said he now accepts that the BBC should have taken a different approach.
On Saturday, BBC Radio 1Xtra DJ Sideman – real name David Whitely – left the station on BBC’s use of the N-word.
He said “the action and the defense of the action feels like a slap in the face to our community”.
His actions were supported by a number of politicians and BBC staff, who offered support to the DJ.
In an email, sent to all BBC staff, Lord Hall said: “I acknowledge that we are involved in creating pain among many people.”
His statement followed Sunday morning on high-profile talks with BBC colleagues.
‘Strengthening guidance’
The Story West story describes an attack on a 21-year-old NHS worker and musician, known as K as K-Dogg, who was hit by a car on July 22 while driving to a bus stop from his workplace , Southmead Hospital in Bristol, round.
In his message, Lord Hall emphasized that it was “the intention of the BBC to mark an alleged racist attack”.
“This is important journalism that the BBC needs to report on and we will continue to do so,” he said. “Yet, despite these good intentions, I recognize that we are concerned about many people’s worries.
“The BBC now accepts that we should have taken a different approach at the time of the broadcast and we regret that. We will now strengthen our guidance on offensive language on our output.
“Every organization needs to be able to recognize when a mistake has been made. We’ve made one here.”
K-Dogg suffered serious injuries including a broken leg, nose and cheekbone in the attack.
Police said the incident is being treated as racially aggravated because of the racist language used by the occupants of the car.
In its initial defense, the BBC said the organization felt it was necessary “not only to lay out and report the injuries, but, given their presumed extreme nature, the words accused are used”.
It said at the time that the decision, which was supported by the K-Dogg family, had not been taken lightly and that the BBC understood that people would be confused.