Australian Olympic swimming coach Michael Palfrey will remain with the team after he said he hoped South Korean swimmer Kim Woo-min beats his Australian rivals to Olympic 400m freestyle gold in Paris.

On Thursday the Australian Olympic Committee released a statement to say Palfrey made a “serious error of judgement”.

Speaking to South Korean media, Australian Palfrey, who in addition to being one of the coaches on the Australian team also works with Kim, said: “I really hope he can win, but ultimately I really hope he swims well.”

Following a conversation with Australia head coach Rohan Taylor, who deemed Palfrey’s actions “extremely disappointing”, the decision to keep him on board was to avoid threatening athlete welfare.

“We took the time to consider the two options – for Mick Palfrey to stay, and for him to be sent home,” Taylor said in a statement.

“After extended conversations with athletes, the athlete leadership group, and coaching staff we have made the decision for Michael to stay.

“It is not one we have taken lightly and I stress this is an ongoing discussion for when we return home.”

Palfrey does not work with Australia duo Sam Short and Elijah Winnington, who are contenders alongside current world champion Kim, for the 400m freestyle gold medal.

He coaches three Australian swimmers on the Olympic team, but has also been working with other South Korean swimmers who, like Kim, have trained in Australia.

In April, Swimming Australia told Olympic team coaches not to start new arrangements with foreign swimmers, with it not uncommon for coaches to work with swimmers from different nations on a freelance basis.

Australian Team chef de mission Anna Meares said Palfrey’s comments were a “surprise and a shock” but supports the decision, saying the final outcome was based on “high-performance and wellbeing”.

The men’s 400m freestyle event will take place on Saturday.