The Oscar-nominated actor was walking around with two friends when a photographer began teasing him about his pink shorts.
"I like the shorts though, bro. They are pretty sexy," said the paparazzi.
A one-minute-long clip of the incident shared by TMZ, finds the actor ignoring photographers as he walks, but when the paparazzi who joked with him tells him to "have a nice day," the Wolf of Wall Street star, 30, gave him a piece of his mind.
"Suck my [expletive], you faggot!" Hill responded as he walked away.
According to TMZ, Hill has advocated for gay rights in the past even condemning Russia's anti-gays laws. While appearing on the Howard Stern show Tuesday, Hill apologized for his actions saying that: "In that moment I said a disgusting word that does not at all reflect how I feel about any group of people."
Hill went on to explain that the photographer had been following him for a while and saying mean things about his family and himself.
"I played into exactly what he wanted and lost my cool," he told Stern, later adding, "I shouldn't have said that."
You can check out a video of the altercation here.