Ferry made comments to a German newspaper that the mass marches and parades of Hitler's regime were to be admired.
He told Welt Am Sonntag: "The Nazis knew how to put themselves in the limelight and present themselves.
"The way in which the Nazis stage-managed and presented themselves, my gentlemen! I'm talking about Leni Riefenstahl films and Albert Speer's buildings and the mass rallies and the flags -- simply fantastic. Really lovely."
Labour peer Lord Janner of Braunstone, QC, who is a former president of the board of deputies of British Jews, said: "I am very pleased that he has apologised. I trust that he will never make the same mistake again.
"It does not wipe out what he did. What matters is that he has apologised."
Jeremy Newmark, chief executive of the Jewish Leadership Council, said: "We do welcome the fact that he has issued a swift comment that there was no intention to condone the Nazi regime. Nevertheless, his choice of language was deeply insensitive."
Ferry's apology follows several calls from the Jewish community for Marks & Spencer to drop the singer, who currently models for the Autograph range alongside Dan Gillespie Sells, lead singer of The Feeling.
In a statement, the singer said: "I apologise unreservedly for any offence caused by my comments on Nazi iconography, which were solely made from an art history perspective. I, like every right-minded individual, find the Nazi regime, and all it stood for, evil and abhorrent."
Marks & Spencer has so refused to comment on Ferry's statements and but it is understood it may drop the 70s star.
In 1999, GQ editor James Brown named Field Marshal Rommel and the Nazis in his magazine's guide to "the 200 most stylish men of the 20th century". The article praised Rommel for being stylish in the face of adversity and pictured him in a uniform personally picked out by Adolf Hitler. Brown resigned his position at Conde Nast soon after when he was criticised for glorifying the Nazi regime. Brown also named Humphrey Bogart and John F Kennedy in his list.