The incident happened during the third quarter of the Giants’ 42-point win over Sydney, following a coming together between the two players.
Papley was then heading to the bench, before Shaw yelled out “you might as well stay up there you f—ing retard.”
The commentary team was aware of the incident, with Jason Dunstall apologising for Shaw’s language on the broadcast.
On Sunday morning, Shaw released the following statement apologising for what he said to Papley.
“I want to apologise for the insensitive comment I made to Tom Papley during last night’s game,” he said.
“Yes I am a fiery person who plays with a lot of passion and emotion but that is no excuse for my actions last night.
“I apologise to Tom and anyone else who took offence to my comments, I deeply regret them.
“There is no place for comments of that nature on or off the football ground. It was an offensive remark that I should never have made and for that I apologise.”
“I don’t know the level of detail, so we’ll use the next 24 hours to have a really good discussion about actually what happened,” he said.
“We’ll look at it, see whether it was right or wrong and then you deal with it, thats all you can do.”