David Cameron's election strategist has denied having any "conversation" with the prime minister over plain packaging on tobacco sold in England and Wales.
Earlier this month, Mr Cameron decided not to go ahead with plans to remove all branding from cigarette packets.
Labour claims adviser Lynton Crosby's work for tobacco giant Philip Morris created a conflict of interest.
But Mr Crosby said he had not "lobbied" any minister over the issue of cigarette packaging.
Mr Cameron has insisted that Mr Crosby, who works for the Conservative Party rather than the coalition, has no role in deciding government policy.
Supporters of plain packaging say it will reduce smoking take-up rates among young people
But the decision on whether to adopt such a policy - already in place in Australia - was delayed earlier this month, with ministers saying it was important to gather more evidence on its effectiveness.
'Simply false'Labour has written to Cabinet Secretary Sir Jeremy Heywood, calling for an investigation of the role of Mr Crosby, who runs lobbying firm Crosby Textor.
The prime minister was feeling fairly relaxed at the end of term - the spotlight had been on Labour and its links to the Unite union and troublesome Tory backbenchers, normally agitating over Europe, had been much less troublesome in recent weeks.
But that didn't stop David Cameron losing his cool on Sunday morning with Andrew Marr. When asked whether he had discussed plain cigarette packaging with, or been lobbied by, Lynton Crosby, he insisted that Mr Crosby had "not intervened" in any way.
When pressed, he said that was "the only answer you're getting".
For weeks now Mr Cameron has refused to say whether they have ever discussed the issue. Now Lynton Crosby himself has spoken out.
David Cameron is apparently pleased Mr Crosby has clarified the situation, but why didn't he seize the initiative before and and take the opportunity to clear it up himself when given the opportunity?
Perhaps because he realised answering the question about whether they'd spoken about plain packaging could only lead to other difficult questions, such as whether he'd had any conversations about minimum pricing of alcohol or private health.
The prime minister has been asked a number of times if he had spoken to Mr Crosby about the plain packaging plans. In answer he has repeatedly said he had not been lobbied by Mr Crosby.
Mr Crosby echoed that when he said: "The prime minister has repeatedly and clearly said that I have never lobbied him on anything, including on the issue of tobacco or plain packaging of cigarettes."
He also went further, denying that they had ever spoken about the issue.
Mr Crosby said: "What the PM said should be enough for any ordinary person, but to avoid any doubt or speculation let me be clear. At no time have I had any conversation or discussion with or lobbied the prime minister, or indeed the health secretary or the health minister, on plain packaging or tobacco issues.
"Indeed, any claim that I have sought to improperly use my position as part-time campaign adviser to the Conservative Party is simply false."
However, a Labour source told the BBC: "This still leaves more questions than answers. David Cameron and Lynton Crosby are still dodging questions on whether they had any conversations on alcohol and private health.
"David Cameron still has to answer the question about whether Lynton Crosby had any conversations with him."
Downing Street sources said Mr Cameron was "pleased" Mr Crosby had clarified that they had never had a conversation or discussion about tobacco policy or the plain packaging of cigarettes.
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