Pauline Hanson has backed away from a threat to block government budget bills unless funding was cut to the ABC.
One Nation whip Brian Burston earlier said the minor party wanted the public broadcaster's allocation reduced by $600 million over four years.
"It's about time we took a stand against the ABC because if it's us and they destroy us, what is it next, the government?" Senator Burston said on Wednesday.
The ultimatum came after the ABC broadcast a leaked recording in which One Nation leader Pauline Hanson appears to acknowledge a $106,000 Jabiru plane was donated by Victorian property developer Bill McNee.
However, Senator Hanson said in a statement later on Wednesday despite the ABC's "bloated budget and regular displays of bias" it would not be in the nation's best interests to block the federal budget.
"The people want One Nation to deal with all legislation on its merits, and the government's budget will be no different," Senator Hanson said.
She said Senator Burston had been fighting for cuts to the ABC since his maiden speech and her colleague's position was not related to the national broadcaster's recent "attacks" on her party.
When asked whether the government would be blackmailed by One Nation, Communications Minister Mitch Fifield told ABC radio: "We have a range of legislative measures before the parliament and we put them forward and ask our colleagues to consider those on their merits."
Three-year funding for the ABC was established in the 2016 budget, he said.
Labor leader Bill Shorten said the One Nation threat had been a stunt.
"We certainly won't be playing any political games which sees the ABC ... held hostage to the right wing of Australian politics."
