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The 20-year-old Olympic gold medalist attributed the rumors to behavior that people don't associate with the stereotypical Australian man, like attending fashion shows and designing pearl jewelry.
"You know I'm a little bit different to what most people would consider being an Australian male," he said on ABC Radio's "Sunday Profile" program. "That doesn't make me gay."
"I have an interest in things most people don't label as being part of the macho male thing," he said.
According to the Melbourne Herald Sun, rumors about Thorpe intensified after he modeled his line of jewelry for Autore Pearls at Australian Fashion Week last year.
Thorpe said the rumors don't bother him.
"It's the most flattering thing that anyone can ever say, because if someone wants to label you or claim you as part of a minority group, it means you must have some strength in your character or in what you do," he said.
Marcus O'Donnell, editor of the gay newspaper Sydney Star Observer, commended Thorpe's response to the rumors.
"It's great that Thorpe is now confident enough to address these rumors head on, and to do it in such a straightforward way," O'Donnell said. "It could make him even more of a gay icon than he already is."
One of the most accomplished and respected swimmers in the world, Thorpe won three gold and two silver medals at the 2000 Olympics in Sydney. He also holds eight world championship titles.
Olympic swimmer Ian Thorpe could become even more of a gay icon after dispelling rumours he was homosexual, according to a Sydney gay community newspaper.
Thorpe shrugged off persistent rumours regarding his sexuality yesterday but said he was flattered by the gay tag.
Thorpe said he believed people had labelled him homosexual because he was articulate, had an interest in fashion and did not resemble the stereotypical macho Aussie bloke.
"You know I'm a little bit different to what most people would consider being an Australian male," Thorpe told ABC radio. "That doesn't make me gay.
"It's the most flattering thing that anyone can ever say because if someone wants to label you or claim you as part of a minority group, it means you must have some strength in your character, or in what you do."
Sydney Star Observer editor Marcus O'Donnell said Thorpe's straightforward response to the rumours would win him even more gay fans.
"There have been a lot of rumours and a lot of speculation about Thorpie and really he has hit the nail on the head - it's because he doesn't measure up to the typical macho Aussie sporting hero," Mr O'Donnell told AAP.
He said speculation about sporting personalities' sexuality was common because there was a lack of gay sporting role models.
"Apart from (rugby league player) Ian Roberts there are no big-name 'out' sports stars," Mr O'Donnell said.
"So when someone new comes along and he has some of what we read as the tell-tale signs - and he doesn't have a girlfriend - then it's natural to start speculating."
Mr O'Donnell said the "Ian Thorpe phenomenon" was a telling sign that old stereotypes were breaking down.
"It's perfectly cool now to be straight and have an interest in Armani fashion or pearl jewellery or Kylie Minogue - and why shouldn't it be?" he said.
"It's great that Thorpe is now confident enough to address these rumours head on, and to do it in such a straightforward way.
"It could make him even more of a gay icon than he already is."
AAP
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