London mayor Boris Johnson said the daughter of former Prime Minister Margaret should have simply been taken aside and spoken to about her language.
"I don't think she should have been fired," he told the Nick Ferrari At Breakfast show.
Meanwhile, Communities Secretary Hazel Blears is expected to tell Labour Party activists in Manchester that the language was "offensive and racist".
She is expected to say later today: "It is right that the BBC took the action they did - they deserve credit for protecting their employees from offensive racist language. Of course "golliwog" is an offensive, racist word when directed at a black person. It is a nasty word and belies a nasty attitude."
Thatcher reportedly made the comment during a conversation in the green room where the production team and guests were gathered after the show.