"If he feels I impugned his reputation, I apologize," said Ford on Wednesday afternoon at city hall. "It will be up to the chief if he wants to move forward with this."
Blair served the mayor's brother and Etobicoke councillor with a defamation notice on Tuesday.
The dispute between the two surrounds comments Ford made when it was revealed his brother would be served a subpoena to appear in court in the case of his friend, Alexander (Sandro) Lisi. The mayor has yet to be issued that subpoena.
The mayor's brother called that politically motivated "payback" and said the police went to the media before telling the mayor about the subpoena.
"You wonder why we need a change at the top? This is why we need a change at the top," said Doug Ford at the time, referring to Blair, whose contract as chief is not being renewed.
The chief previously said that Ford was lying before serving the councillor with the notice.
Ford said he "100 per cent" retracts his comments.
"It's time to bury the hatchet. Let's hang up the gloves," he said.