The extensive article, which is based on 60 interviews with friends and colleagues of the First Daughter, claimed Donald "wouldn't stop talking" about the infamous "1 Night In Paris" tape when it was released in 2003.
"Paris is laughing all the way to the bank, she's got the last laugh, she's marvelous," the unnamed source claims Trump said.
According to the publication, Ivanka "could not believe her father was not only idolizing an airhead heiress caught blowing a guy on a night-vision video but encouraging her to follow Paris's lead."
White House press secretary Stephanie Grisham told New York Magazine the claim "is untrue and is disgusting.”
The pornographic tape, which depicts Paris having sex with then-boyfriend Rick Salomon, was later condemned by Hilton, who sued Salomon over its release.
"The thing with Paris hurt Ivanka a lot," a friend told the magazine. "He was heartbreaking to her at times."
The piece claims Ivanka was "frustrated" by her father's chauvinism, and that she was "repelled by the way he talked about women's bodies — who was fat, who was not."
It claimed she was aware he hired many women at the Trump Organization who weren't "universally pretty", as he wanted to employ females with "traditionally masculine attitudes and almost enjoyed feeling discomfited by them, having them boss him around."
Elsewhere in the article, friends claim that in her 20s, Ivanka's ideal man — the one she had fantasies about — was Patrick Bateman, Christian Bale's character in "American Psycho": "who is, of course, an '80s scenester just like her father was back then," the publication states, "suspenders, slicked-back hair, chops up women for a hobby."
Donald, who counts Paris's parents among his friends, told Howard Stern in 2003 that he had watched Paris's sex tape.
In the same interview, he said he considered her "really beautiful", and described the first time he laid eyes on her at 12 years old.
"I've known Paris Hilton from the time she's 12, her parents are friends of mine, and the first time I saw her she walked into the room and I said, 'Who the hell is that?'"
When Stern asked "Did you wanna bang her?", Trump replied: "Well, at 12, I wasn't interested; I've never been into that... I've always stuck around that 25 category. But I saw her at 12 and she was beautiful."
In 2016 Paris stated she voted for Trump, but later claimed she hadn't voted in the election at all.
TooFab has reached out to representatives for Ivanka Trump seeking comment.