During the race, both Vettel and Hamilton were engaged in a head-to-head battle when the former ran across the grass at the Turn 3-4 chicane accidentally, in the process squeezing the Britsh driver when he re-joined the track, Formula 1 reported.
The incident led to the stewards awarding a five-second race time penalty to the German driver.
Talking about the penalty, Vettel was quoted as saying: "I had nowhere to go. I didn't see him. Where was I supposed to go? I have grass on my wheels. He decides to go that way, if he got to the inside he got past me."
Meanwhile, Ferrari will appeal against the decision over the five-second penalty given to Vettel which costed him in the race.
Vettel had taken the lead from the pole position and was ahead of Hamilton till lap 48 when he lost track. It meant that Hamilton claimed a record-equalling seventh victory in Canada to match Michael Schumacher's record in the country.
In the process, Hamilton secured his fifth win of the season and extended his lead in the drivers' standings.
Speaking after he climbed out of the car, Hamilton said: "Naturally, absolutely it's not the way I wanted to win. I was pushing to the end to try and get past. I forced him into an error, he went wide, I had the run on that corner and we nearly collided. It's unfortunate, but this is motor racing."
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