Sabsabi and Dagostino had been selected to represent Australia at the prestigious Venice Biennale, but their selection was suddenly overturned two weeks ago over questions about Sabsabi's early artworks.
Since that shock decision, anger in the artistic community has been building, with dozens protesting outside the funding body's office in Pyrmont on Thursday morning.
Poet Omar Sakr addressed the rally, with several protesters bearing signs reading "Stop silencing pro-Palestine voices".
More than 4000 people have signed an open letter demanding the reinstatement of the art duo, while artists and curators who have previously represented Australia in Venice have also made statements of support.
On Wednesday evening, Sabsabi and Dagostino issued a second public statement since their Venice commission was revoked, asking for a public apology from Creative Australia for themselves, others affected, and the arts sector in general.
"We request the Creative Australia board acknowledges the lack of respect and care it had for our appointment and commits to this never happening to another artist again," they said in the statement posted online.Creative Australia rescinded its invitation to Sabsabi and Dagostino on the grounds it would cause a prolonged and divisive debate and that it posed an unacceptable risk to public support for Australia's artistic community.
The early Sabsabi video artworks that initially sparked the controversy featured the September 11, 2001 attacks on the United States and the late Hezbollah leader Hassan Nasrallah.
Sabsabi and Dagostino have asked the funding body to explain publicly how it reached its conclusions, citing the opinions of art experts who have found the works are ambiguous and anti-ideology.
The art team said while the revocation had been distressing, they remained committed to presenting an artwork in Venice, and thanked Australia's arts sector for its support.
"While this has been a deeply challenging experience, we are heartened by the generosity, courage, and unity demonstrated by the art community in Australia and afar," they said.
Their public statement has also revealed discrepancies in accounts of the timing of the revocation, with testimony given by Creative Australia bosses at senate estimates on Tuesday night.
Chief executive Adrian Collette gave evidence that Creative Australia formally terminated its contract with Sabsabi and Dagostino at 4.30pm on Tuesday, just four hours before the arts chiefs faced the hearing to defend their actions.
But the artist and curator have now stated this notification took place even later, at just after 6pm.
