Prime Minister John Key says an American public relations company on a permanent retainer arranged his appearance on David Letterman's show two years ago.
Mr Key, who is Minister of Tourism, went on the prime time show to promote New Zealand as a destination while he was visiting the United States.
TV3 reported tonight he was invited only because Tourism New Zealand paid a public relations company a $10,000 retainer to raise New Zealand's profile.
Mr Key said at his post-cabinet press conference the company was on a permanent retainer and worked on numerous projects.
"There was no payment to Letterman. Tourism New Zealand have a public relations company, they're on a retainer, they pay them every month, irrelevant of what I do," he said.