The Daily News is apologizing after organizers of the Puerto Rican Day Parade threatened to sever ties with their longtime sponsor.

It comes after outrage erupted last week, when the paper published a racy photo of two women with the headline "rear view on parade."

Parade organizers protested, saying the women were not affiliated with the event and that the image misrepresented the celebration.

The publication is now calling the photo a "misstep," and they blame the error on misinformation from a wire photo service.

The Daily News writes, in part, "As a result (of that misinformation), we negatively mischaracterized what the Puerto Rican community represents...Each day, we take seriously the task of presenting the bold, honest and sometimes risqué personality of this city as we cover the stories that affect people’s lives. We like to believe that most of the time we get it right. This time we did not."