"Who are you, Woody Allen?" "View" co-host Joy Behar stammered.
Trump's questionable comments came while he and Ivanka were guests on the ABC show promoting Ivanka's first appearance on "The Apprentice" last night as a boardroom adviser.
It all began when Trump was asked how he'd react if Ivanka, a former teen model, posed for Playboy.
"If she posed, it would be fine. But it depends on what's inside the magazine," Trump answered.
"Although she does have a very nice figure," he said. "I've said if she wasn't my daughter, perhaps I'd be dating her."
The co-hosts and audience erupted in laughter and catcalls at the comment, but the subject was quickly changed to Trump's famous feud with Martha Stewart.
After the show, Trump told The Post that he was only joking around.
"The audience got the biggest laughs when I said that," Trump said. "It was very down-the-middle.
Ivanka, who just graduated from the Wharton Business School - her father's alma mater - and her brother, Donald Jr., are subbing for George Ross and Carolyn Kepcher alongside their dad in "The Apprentice" boardroom for a few episodes.
Trump and wife Melania are expecting their first child this spring.