Legal action against Creative Australia is inevitable unless the funding body acts to restore the reputation of artist Khaled Sabsabi, his gallerist says.
Sabsabi, along with curator Michael Dagostino, had been picked to represent Australia at the Venice Biennale, but their invitation was rescinded in February after Sabsabi's artworks from two decades ago were highlighted in a gossip column and then raised in parliament.
The artworks featured the 9/11 terrorist attacks on the US, and former Hezbollah leader Hassan Nasrallah, but art critics say the works examine representations of ideology, and should not be interpreted as supporting terrorism.
Hours after these artworks were questioned in parliament, a last-minute meeting of the Creative Australia board overturned the selection of the artistic team.
Sabsabi's gallerist Josh Milani says Creative Australia has since failed to disavow the characterisation of the artist as a terrorist sympathiser.
"If they can't find a path forward to restore Khaled Sabsabi's good name, then legal action is inevitable," said Milani.
The artistic team still hopes to be reinstated, and Milani said resolving the differences with Creative Australia before they head to court is the preferred option.
At a senate estimates hearing examining the controversy, Creative Australia chief executive Adrian Collette acknowledged the selection process had fallen short, adding that it "has not failed on artistic grounds, and it is not a reflection on the artistic team recommended for Venice."
On Wednesday, Creative Australia declined to comment on contractual matters, but said its intention was to honour its financial obligations to the artist and curator.
"For Khaled Sabsabi to represent Australia at the Venice Biennale would have been the pinnacle of his career so far," said Milani, who believes the controversy has also hurt the artist personally.
He described Sabsabi as a peaceful person, whose Sufi faith means he believes in humanity before organised religion.
The recent postponement of the Flat Earth exhibition at the Monash University Museum of Art in Melbourne, which was to have featured Sabsabi's work, is an example of the university executive following Creative Australia's lead, Milani said.
"Through consultation with our communities we have identified there is a need for the Museum to deepen its collaboration and engagement on this exhibition. Postponing the event will allow this important work to be undertaken," a university spokesperson said in a statement.
On Friday, Sabsabi and Dagostino launched an online crowdfunding campaign to present their artwork at Venice independently, and it's estimated they will need more than $500,000.
Creative Australia's production budget for the project is believed to be at least that amount, while presenting the work outside the Australia Pavilion would also mean hiring a venue to showcase it.
