The Bristol Evening Post carried a story last week accompanied by a picture of deputy group leader Richard Eddy with a 12-inch golly.
Mr Eddy told the newspaper that the nine strong Conservative group was thinking of taking the figure to a full council meeting the following week.
He referred to the recent decision by Robertson's to drop the figure from its logo.
Following widespread criticism, however, he resigned later that day as deputy leader of the Tory group. He said 'deeply regretted the sensational spin given to this story' and accepted that the published photograph had caused 'real and understandable offence'.
Fellow Tory councillor Jack Lopresti said: 'We are all sick and tired of Richard's schoolboy right-wing rhetoric. He should have shown some care for other people's feelings.'
Peter Abraham, Tory group leader, said there were no plans, and never had been, to have a golliwog mascot. He added: 'As the first party to introduce a race relations policy for the city council I refute any question of accusations of racism.'