Ms Shelly was photographed outside a Sydney court on Monday, alongside her clients Thorne and Mostafa Shiddiquzzaman.
Thorne was sentenced to nine months' jail for flying under a false ID and buying tickets under a false ID last month, but was released on bail as he waits to appeal the sentence.
He was in court to amend his bail conditions, so he could attend Ramadan prayers.
The photo of Thorne and Ms Shelly, a lawyer of seven years and executive member of the NSW Council for Civil Liberties, was published on Tuesday’s Daily Telegraph.
Ms Shelly was referred to in the photo caption as a “female companion”.
In an email to the Australian Muslim Women’s Association, Ms Shelly said she was “deeply disappointed”.
“It was in my capacity as a lawyer that I attended, and will continue to attend, court upon my client’s behalf,” she said.
“… It is deeply disappointing that as a professional Muslim woman, I have been depicted in the manner chosen by the Daily Telegraph.”
Ms Shelly’s lawyer Stephen Blanks told SBS that he had written to the Daily Telegraph, outlining defamation concerns.
“We’ve asked that the Daily Telegraph publish a correction and an apology,” he said.
Comment has been sought from the Daily Telegraph, which clarified the issue in print on Wednesday.
Ms Shelly has previously spoken out against the actions of Sydney siege shooter, Man Horan Monis, and Daesh recruitment videos.
