The West Australian, who plays for Chelsea in London, appeared in court in London on Monday accused of using insulting, threatening or abusive words that caused alarm or distress to PC Lovell during an incident in Twickenham on January 30 this year.
Kerr, who appeared at Kingston Crown Court via videolink, spoke only to confirm her identity and to enter a not guilty plea to the charge, the Daily Mail reported.
The Metropolitan Police later confirmed: "Samantha Kerr, 30, of Richmond was charged via postal charge requisition on 21 January with a racially aggravated offence under Section 4A Public Order Act 1986.
"The charge relates to an incident involving a police officer who was responding to a complaint involving a taxi fare on 30 January 2023 in Twickenham."
"I understand that the defence is that she didn't intend to cause alarm, harassment or distress to the officer, [her behaviour] did not amount to it and it was not racially aggravated," Judge Judith Elaine Coello was reported to have said to Kerr's barrister, Grace Forbes, in court.
Kerr is one of Australia's best known and most recognisable figures, especially after the Matildas' run to the semi-finals of the home-hosted Women's World Cup last year.
"Football Australia is aware of the legal proceedings involving Sam Kerr in the United Kingdom," an FA statement read.
"As this is an ongoing legal matter, we are unable to provide further comment at this time. Our focus remains on supporting all our players, both on and off the field. We will continue to monitor the situation and provide support as appropriate."
Kerr is expected to go to trial in February next year and two police officers are scheduled to give evidence. The trial is due to last four days.
In May last year, she carried the Australian flag at the coronation of King Charles III in Westminster Abbey.