Minister for Education Ruairi Quinn said that neither he nor the Tánaiste had any involvement in the appointment of Eamon Gilmore's wife to the post of policy specialist at the Department of Education.
Carol Hanney will move to her new role once her current job as head of Dun Laoghaire Vocational Education Committee is scrapped next year.
She will retain her current salary of €92,000.
Minister Quinn said that Carol Hanney, along with two other VEC CEOs, will advise on policy rather than political matters.
"The Tánaiste had absolutely no involvement whatsoever, nor indeed did I, in the sense that the negotiations and the terms and conditions and the specifications of her redeployment as a permanent civil servant, was conducted between senior officials in the Department of Education and Skills and the three people involved," he said.
The Irish Examiner were first to break the story last Thursday here