National MP Todd Barclay confirms he did tell the Prime Minister he made secret recordings of a staff member.
Barclay has made a short statement to media before walking away without answering questions.
There was speculation he would resign but he gave no indication he would do so.
The Clutha-Southland MP has repeatedly denied making secret recordings of a staff member - but English today revealed he informed police that Barclay had told him he left a dictaphone running in his electorate office and had recordings of his staff.
This morning Bill English said he had confidence in his MP who is accused of secretly recording one of his electorate staff.
This afternoon he released a statement he gave to police which contradicts Barclay's position that he did no such thing.
In Parliament Labour Leader Andrew Little's accused English of being involved in a cover up.
"How can he possibly claim to have any moral standards at all," Little said.
 But Bill English rejects the assertion.
"I disagree with that, I think a statement to the police is not a cover up."
LISTEN ABOVE: Political editor Barry Soper speaks with Kerre McIvor
When asked why as Prime Minister he had not revealed that information during the controversy over resignations at Barclay's office, English said he had told police.
"I made a statement to police, the police investigated it, the investigation was completed and as far as I was concerned those issues have been dealt with.
"The substance of my statement to police is he told me there were recordings of his staff."
It is a major change of position from the Prime Minister after he came under intense pressure after it emerged he had sent text messages to former Clutha-Southland electorate chairman Stuart Davie stating Barclay had recorded his former electorate agent Glenys Dickson.
It is illegal to intentionally intercept private communications you are not party to. Police investigated after a complaint from Dickson, but concluded there was insufficient evidence after Barclay declined to be interviewed.
The text from English to Davie on February 21 last year read: "He left a dictaphone running that picked up all conversations in the office. Just the office end of phone conversations. The settlement was larger than normal because of the privacy breach."
After the text exchange was reported by Newsroom, English confirmed the text message was his, but repeatedly said he could not recall who told him about the alleged recording, but said it was possible that information had come from Barclay.
SEE ALSO: Barclay stands by decision to not talk to police
Today, Barclay categorically stated he had not told the Prime Minister about any recording. Asked directly if he used a dictaphone to record Dickson, he said, "I've seen the allegations and I totally refute them".
English said those statements were now a matter for Barclay to consider.
Take your Radio, Podcasts and Music with you