It also advises against the use of the term "Aborigines"
Staff and students at an Australian university have been told to refer to the country as having been "invaded, occupied and colonised" rather than "settled".
The University of New South Wales' Indigenous Terminology guide aims to give advice on the appropriate language to use around Australian indigenous history and culture.
It also suggests it is more appropriate to describe explorer Captain James Cook as "the first Englishman to map the east coast of 'New Holland'" - as Australia was then called - than say he "discovered" it in April 1770.
And it advises against the use of the term "Aborigines", in favour of "Indigenous Australian People", to avoid implying all indigenous Australians are the same.
The guide states: "Australia was not settled peacefully, it was invaded, occupied and colonised".
"Describing the arrival of the Europeans as a 'settlement' attempts to view Australian history from the shores of England rather than the shores of Australia".
It goes on: "The use of the word 'settlement' ignores the reality of Indigenous Australian people's lands being stolen from them".
It adds: "Most Aboriginal people find the word 'discovery' offensive".
The guide has been criticised by conservative commentator and Australian radio host Alan Jones, who told his listeners the guidelines would make "smoke come out of your ears", according to a news.com.au report.
"This rubbish toolkit devised by the University of New South Wales represents anti-intellectualism and political correctness at its worst," it quoted him as saying.
The conservative Daily Telegraph newspaper in Sydney accused the university of rewriting history.
The university said the guide was not designed to be politically correct or dictate the use of language.
"The guide does not mandate what language can be used. Rather, it uses a more appropriate/less appropriate format," it said in a statement.
"We always encourage students to form their own opinions so to suggest that such a guide would stifle open debate in any way is plainly wrong".