A National Party donor has rejected an apology from Andrew Little, and he's taking the matter to court.

Earl Hagaman won a major hotel management contract in Niue for his Scenic Hotel Group in September 2014.

It was the same month he donated $101,000 to the National Party.

Andrew Little questioned the timing of the donation and the awarding of the contract.

Mr Hagaman filed defamation proceedings against Mr Little as a result.

In a bid to settle the agreement, Mr Little offered an apology and to make a substantial contribution towards Mr Hagaman's costs.

But his apology and redress have been rejected by Earl Hagaman, who's pressing on with court action.

The Auditor General has found no connection between the donation and the contract.