Beverley Flynn is to give up a €41,000 allowance she was allocated as an Independent TD, the Fianna Fáil deputy said this morning.
Speaking on Midwest radio this morning, Ms Flynn said she spoke with Taoiseach Brian Cowen yesterday about the issue.
"When I mentioned this issue to the Taoiseach I said I was obviously anxious and happy that the regulations would be changed to reflect the correct status of every TD in the Dáil," said Ms Flynn.
"The Taoiseach has given me to believe that that will actually happen and in the light of that indication from the Taoiseach it is my intention to immediately write to the Houses of the Oireachtas Commission to rescind the payment on my own behalf."
Ms Flynn had previously insisted she would keep the €41,152 allowance for Independent TDs even though she has now rejoined Fianna Fáil.
She said she had not done anything wrong in claiming the money and was deeply hurt by some of the media comments that portrayed her as being dishonest.
"I was using the allowance for the purpose of my constituents, it was not an allowance that was being used personally for myself...that was never the intention of the allowance of the first place and certainly it was never my intention to benefit personally in any way from it and nor did I," said Ms Flynn.
"I have been absolutely honest and upfront. I used that allowance for the benefit of my constituents all the time that I got it and long before I was in receipt of it I actually dipped into my own resources to enhance the services I provide to my constituents."
"The reason why I've taken this step this morning, is not because I'm not in compliance with the regualations as it currently stands, I am, but I'm taking this decision because it has developed into a controversy," she added.
A spokewoman for Fianna Fáil this morning confirmed that Ms Flynn intended to write to the Oireachtas asking that the allowance be withdrawn.
Green Party leader and Minister for the Environment John Gormley and Minister for Community, Rural and Gaeltacht Affairs Éamon Ó Cuív both indicated their disquiet yesterday that Ms Flynn continued to claim the allowance.
The payment to Ms Flynn was made under the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001. A TD who gets elected as an Independent and subsequently joins a party is paid as an Independent for the duration of the Dáil term. In the case of a TD who starts out as a party member but becomes an Independent, his or her former party continues to receive the payment until the next general election.
Joe Behan TD, who resigned from Fianna Fáil to become an Independent, said yesterday the party had retained his allowance.