Tyler, 64, then implied that Minaj wouldn't be able to spot talent if it stood before her.
"You just have to give your opinion. It wasn't hard for me, but I would imagine it's hard for some people, and they need a manager to say 'Shut the f**k up, and just give them your opinion,'" Tyler said.
"These kids, they just got out of a car from the Midwest somewhere and they're in New York City, they're scared to death; you're not going to get the best [out of them]. ... If it was Bob Dylan, Nicki Minaj would have had him sent to the cornfield! Whereas, if it was Bob Dylan with us, we would have brought the best of him out, as we did with Phillip Phillips. Just saying."
Listen to Tyler's MTV interview below:
'GO F**K YOURSELF AND WORRY ABOUT YOURSELF BABE'
Minaj fired back with a Twitter rant, accusing Tyler of racism.
"Steven Tyler said I would have sent Bob Dylan to a cornfield??? Steven, you haven't seen me judge one single solitary contestant yet," she wrote.
"I understand you really wanted to keep your job but take that up with the producers. I haven't done anything to you. That's a racist comment. You assume that I wouldn't have liked Bob Dylan??? why? black? rapper? what? go f**k yourself and worry about yourself babe."
Later, she added, "LOL lets make him a shirt that says "No Coloreds Allowed" then escort him down 2 Barbara Walters so he can tell how he was threatened w/guns.
"When Steven 1st went on Idol he was ridiculed by his peers & fans alike. Called a sell out. So what does he do? Ridicule the next judge."
But Tyler insists his comments weren't racially motivated, telling Canadian entertainment show eTalk that Minaj has got the wrong end of the stick.
"I apologise if it was taken wrong, Nicki ... but I am the farthest from [being a racist]."
He added, "I am the last thing on this planet as far as being a racist. I don't know where she got that out of me saying I'm not sure how she would've judged Bob Dylan."
Tyler added, "Maybe I spoke out of turn...But a racist I'm not, Nicki."
Last month, footage of Minaj engaging in a verbal spat with fellow Idol judge Carey hit the net.
Gossip website TMZ posted video of Minaj, 29, hurling F-bombs at the pop diva, 42, after a disagreement about a contestant's audition.
A source said at the time: "Nicki Minaj walked off of set because Mariah Carey kept making jabs at her.
"Nicki's manager and team convinced her to come back to the show. Mariah kept at it and called Nicki 'a b**h' and then proceeded to cuss her out. Producers had to stop filming and call it a night."
What followed was Minaj's expletive-filled rant caught on tape, with fellow panelists Keith Urban and Randy Jackson caught in the middle.
'IF I HAD A GUN, I WOULD SHOOT THE B***H'
The dispute became even more heated, according to veteran TV presenter Barbara Walters.
The View co-host said Carey claimed multiple people overheard Minaj ranting, "If I had a gun, I would shoot the b**ch" during their throwdown.
Carey told Walters that she "doesn't feel comfortable emotionally" after the clash and hired extra security as a result.
"She is very concerned. She is with her twins," Walters said. "She doesn't feel that anything would happen. I'm quoting now, 'But Nicki is unpredictable' and Mariah says she can't take a chance and she has hired extra security."
Minaj, however, claims she never made the threat.
"Hey yAll. Lets just say nicki said smthn about a gun. ppl will believe it cuz she's a black rapper. Lmao. I'll then hit up Barbara n milk it."
Minaj continued, "Ironically no camera or mic heard the gun comment tho. Lol @ the struggle. Not even the producers believed u. Say no to violence barbz."
The next season of American Idol will begin on January 16 in the US.
FAST GOSSIP
And finally...
* Let's just say she has a type: Demi Moore reportedly dating toyboy art dealer, aged 26.
* Hell yes: Cate Blanchett in negotiations to play evil stepmother in Disney's Cinderella.
* RIP Jared Leto's eyebrows, plus actor dishes on weight loss for new movie.
* Kate Middleton pregnant reports are back with a vengeance.
* Watch: will.I.am and Britney Spears debut video for Scream & Shout.
* Christina Aguilera "paid for her pumped-up rear end", screams tabloid. You can hear a source from the songbird's camp laughing maniacally from here.
* Kim Kardashian still "handcuffed" to Kris Humphries, lawyer complains.
* It's a girl for Guy! Ritchie and Jacqui Ainsley welcome second child together.
* Justin Bieber's baby daddy DNA drama is back.
* Adam Lambert explains fresh arm ink.
* Did Jennifer Lopez throw a mile-high diva fit?
* Jason Patric fighting for secret son.
* Her father told you this was on the cards: Lindsay Lohan charged with assault at NYC nightclub.
* Donald Trump thinks we're all entitled to his opinion. That includes you, Gabriel Aubry.
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- Rumour Has It