Alan Hardwick said that he told a manager at Yorkshire Television that he'd witnessed the Jim'll Fix It star pinch a young girl's bottom.
However, the 63-year-old claims that he was "laughed at" by colleagues, who said: "Don't you know that Savile likes them young?"
Police have launched a formal criminal investigation into Savile's alleged abuses, which are believed to have occurred over a 40-year period and involved potentially more than 300 victims.
Hardwick, a former Calendar presenter who is now standing for the Lincolnshire Police and Crime Commissioner post, told the Lincolnshire Echo about a time in the late 1980s when he saw Savile's alleged abuse firsthand.
"Savile was in the [Yorkshire Television] building and I was going to go and say hello to him," he told the paper.
"I went into the studio and standing with his back to me was Jimmy Savile with about half a dozen girls with him. They were probably 12 or 13.
"They were about to go on set so I decided I would speak to Savile later but before I left he squeezed the bottom of the little girl to his right who he had his arm around."
Hardwick said that he raised the issue with his manager, who according to him quickly brushed off the incident.
"He said that the girl must have been a relative to Savile and was just being friendly and I accepted that," Hardwick said.
"I mentioned it to other people in the industry and at the BBC and I was laughed at because they all said, 'Don't you know that Savile likes them young?' I felt a bit of a fool."
Discussing the recent reporting on the allegations against Savile, Hardwick added: "I have been watching the various programmes on him with concern and total amazement - but mostly with disgust. Without a doubt his status protected him.
"It was generally known within television not that he was a predator or a paedophile, but that he liked them young.
"I was quite willing to accept the word of the manager but looking back, even if it had been a relative of Savile's, it still was wrong. It did not even occur to me at the time to take the matter further."
Meanwhile, the director of public prosecutions, Keir Starmer, has said that he will review the decision by the Crown Prosecution Service not to prosecute Savile over the alleged abuse back in 2009. The former BBC star passed away last year.