Seven has gone to ground amid concerns Schapelle Corby could jeopardise her parole if she does an interview with the TV network.
Seven has yet to officially confirm its investigative program Sunday Night has an exclusive $2 million agreement to speak to Corby.
Now Indonesian authorities say it could end the convicted drug smuggler's parole if she goes ahead with the interview.
Seven on Friday did not respond to questions by AAP about whether it has now changed its plans for the interview.
Indonesia's deputy law and human rights minister Denny Indrayana on Thursday night said an interview would threaten Corby's parole, and it "would be wise" for her not to do it.
If the interview took place, Mr Indrayana said, it was possible that Corby's parole would be revoked.
Since her release from Kerobokan jail on Monday, Corby has been in talks with the Seven Network about her first TV interview, with reports the exclusive rights could earn her $2 million.
The backlash in both Australia and Indonesia prompted sister Mercedes Corby to release a statement to TV describing the reported sum as ridiculous.
Australian politicians have also spoken about their dismay at Seven entertaining Corby, who was convicted in 2005 of trying to smuggle more than 4kg of marijuana into Bali.
Even Seven's Sunrise co-host David Koch have been critical of his station for paying Corby.
Yet seven executives continue to refuse to confirm the deal despite Sunday Night's veteran TV journalist Mike Willesee being in Bali with a camera crew.
Whether the interview goes ahead or not Seven has handled the situation poorly.
It appears the station never properly thought through the implications of the deal or the backlash the it would receive for pulling out the cheque book.
Seven can only hope the whole saga doesn't have knock-on effect on the network as whole.
