Shadbolt said the cost of his rental car would now be taken to the council for a decision on reimbursement next Tuesday.
"If this is not a complete misuse of council time, I don't know what is," an angry Shadbolt told the Herald.
"This highlights the need for reform.
"There should be rights that come with the Office of Mayor that can not be politicised or withdrawn - the first being the right to budget and staff," he said.
Shadbolt earlier said he was likely to take a taxi between the two cities after deputy mayor Nobby Clark, who initially approved the expenditure, changed his mind in an email sent on Saturday.
He labelled the move "petty and small-minded" and accused Clark, who is running for the mayoralty, of having a conflict of interest.
Clark on Sunday told the Otago Daily Times he found himself in a curious position as deputy, as he had to take on some of the duties of the mayor.
There were two issues at stake, firstly that Shadbolt wanted to add days away and secondly to use a rental car, Clark said.
He had no issue with adding extra days to the travel arrangements as long as additional costs were not borne by the council.
He believed the rental car would be for Shadbolt's partner and son to get around, Clark said.
The Invercargill Ratepayers' Association declined to comment when contacted today.