Donald Trump's new lawyer, Rudy Giuliani, has admitted the President repaid attorney Michael Cohen $130,000 used to keep porn star Stormy Daniels quiet before the 2016 presidential election.
President Trump had previously maintained that he was not aware of the hush money Daniels had received to buy her silence over their alleged affair.
She claims she had sex with Mr Trump in 2006, months after his third wife gave birth to his youngest child.
Former New York mayor Giuliani told Fox News' Hannity programme that Mr Trump's payment to Mr Cohen "is going to turn out to be perfectly legal" because "that money was not campaign money".
Asked if Mr Trump knew about the arrangement, Mr Giuliani said: "He didn't know about the specifics of it, as far as I know. But he did know about the general arrangement, that Michael would take care of things like this, like I take care of things like this for my clients.
"I don't burden them with every single thing that comes along. These are busy people."
Daniels is suing Mr Cohen for defamation after he questioned her story about the alleged sexual encounter.
The 39-year-old – real name Stephanie Clifford – says she had unprotected sex with Mr Trump after he invited her to his hotel room, then pulled his trousers down.
She is seeking to be released from the $130,000 non-disclosure agreement she signed shortly before the 2016 presidential election to stay quiet about the alleged affair, with Mr Cohen having admitted to paying for it.
0:40He said that Mr Trump was not part of the transaction and expressed doubt over Daniels' story, demanding that she "cease and desist".
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In court documents filed in Los Angeles, Ms Daniels' attorney said: "Cohen meant to convey that Ms Clifford is a liar, someone who should not be trusted, and that her claims about her relationship with Mr Trump is 'something (that) isn't true'."
Daniels' lawyer, Michael Avenatti, has said he is holding back further details of the alleged affair, including the contents of a data disc he tweeted a picture of last week, for strategic reasons.
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