The comedian was on hand Thursday night (June 7) at the American Film Institute's tribute to actress Shirley MacLaine.
According to The Hollywood Reporter, he stood to give a speech in honour of MacLaine and made the offensive joke, saying: "I shouldn't make fun of the blacks. President Obama is a personal friend of mine. He was over to the house yesterday, but the mop broke."
Rickles targeted several celebrities in the audience during the black-tie event, including Jack Nicholson and MacLaine's brother Warren Beatty.
He also took aim at Jennifer Aniston, claiming she "took my table at the Tower Restaurant one night because she was in heat with some guy".
The 86-year-old, who was recently honoured with the Johnny Carson prize at The Comedy Awards, has attempted comedy about Obama before.
Shortly after the politician's 2008 election, Rickles appeared on the Late Show with David Letterman, where jokes about Obama playing basketball in the White House during a national emergency were greeted by discomfort from the studio audience.
Watch Don Rickles's appearance on the Late Show with David Letterman below: