Embattled Defence Minister Linda Reynolds has apologised for calling an alleged rape victim a "lying cow" after the threat of legal action.
Former Liberal staffer Brittany Higgins alleges she was sexual assaulted by a fellow ministerial adviser in Senator Reynolds' office in 2019.
The minister on Friday apologised for last month calling her former employee a "lying cow" after being criticised for not offering enough support to Ms Higgins at the time.
After lawyers fired off a letter threatening to sue Senator Reynolds, she issued a fresh statement apologising for the remarks.
"Discussions are now under way through our legal representatives in an effort to resolve this matter as soon as possible, with any resolution to include an apology," she said.
"However, in the meantime, I want to express how deeply sorry I am for these remarks and for any hurt and distress they have caused."
Ms Higgins' lawyers said the ex-staffer was appalled Senator Reynolds apologised to staff who heard the remark but not her.
"Self-evidently, this demeaning and belittling statement, in which you refer to our client as a member of the animal kingdom and declare her to be untruthful, is highly defamatory of our client's good character and unblemished reputation," the letter said.
Senior cabinet ministers have backed the defence minister despite increasing pressure for her to resign.
Home Affairs Minister Peter Dutton said his cabinet colleague wasn't questioning the veracity of the rape allegations, but responding to suggestions she hadn't offered enough support.
"Linda genuinely felt hurt by the fact she thought she had provided every assistance possible obviously over a period of time," he told the Nine Network on Friday.
Mr Dutton said the prime minister was right to rebuke the defence minister but she did not need to resign.
"I see Linda in action around the national security committee of cabinet, she is incredibly competent," he said.
Deputy Labor leader Richard Marles said Scott Morrison also needed to apologise.
"He ducks at every moment and Linda Reynolds is under pressure because basically, the prime minister has hung her out to dry," he told Nine.
Independent senator Jacqui Lambie said the leaks from Senator Reynolds' office showed the minister must relinquish the defence portfolio.
"When you've lost the respect of your own people and they're going out to the media, I think you're gone," she told ABC radio.
She said the sexual assault allegations engulfing federal parliament had further eroded public trust in politics.
"It nearly brings tears to my eyes that people are saying 'what is going on here?'," Senator Lambie said.
"It is absolutely disgraceful."
Senator Reynolds is on medical leave after her cardiologist recommended time off when she was under immense pressure over her handling of Ms Higgins' complaint.
