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James Cameron claims he wouldn't have been offended if Sacha Baron Cohen had poked fun at Avatar at the Oscars.

The controversial Bruno star, 38, was slated to be a presenter on the show, but was dropped because he planned to appear onstage in a blue bodysuit impersonating a female Na'vi character from Cameron's blockbuster film.

According to reports, Cohen was going to say he was pregnant with the Best Director nominee's love child. But producers worried the skit would upset Cameron, so a solo Ben Stiller ended up appearing on stage instead.

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Asked about Cohen's skit, Cameron, 55, told UsMagzine.com on the red carpet: "Well I heard about that. But, you know, it's all part of the fun, isn't it?"

Even though he lost out to his ex, Hurt Locker director Kathryn Bigelow, in the Best Director and Best Picture categories, Cameron told Us it felt "amazing" to be at the show.

"It's just such a great celebration of movies in general and I feel like there's a real celebration here," he told Us. "We're just here to have fun."