Prime Minister John Key's appearance on Late Show with David Letterman may have cost taxpayers up to $10,000.

Key confirmed today that Tourism New Zealand paid a public relations company to arrange his appearance on the show in 2009.

But he denied any direct payment was made to producers.

"There was no payment made to Letterman," Key said said at a media conference today.

"I've been informed that Tourism New Zealand have a PR company. They're on a retainer. They pay them every month, irrelevant of what I do."

"Apparently, when the Letterman show was on, that was one of the projects they worked on. They would have made the payment whether I was there or not."

ONE News understands the company was paid about $10,000 to organise the appearance
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