Sky News boss Greg Byrnes knew convicted racist Blair Cottrell was set to be interviewed on The Adam Giles Show and even gave the segment the green light.

The former news director has told staff he gave former Northern Territory chief minister Adam Giles the go-ahead to interview Cottrell because he thought his controversial views would be challenged on-air.

Sky's chief executive Angelos Frangopoulos has said Cottrell will never appear as a commentator on the channel again, while The Adam Giles Show has been suspended pending an internal review.

Sky news staff hold concerns incidents like the Cottrell interview will continue to occur due what they see as a lack of resources and little direction being offered by editorial management.