PlayLabour's general secretary has denied he helped set up a website to spread smears about senior Tories.
Ray Collins was accused of attending a meeting with then Downing Street aide Damian McBride, at which the planning and organisation of the Red Rag site was discussed.
The claim was made in a newspaper report that said it had obtained an email proving that Mr Collins chaired the gathering at the offices of the Unite trade union.
Red Rag was the site on which Mr McBride, who quit as one of Gordon Brown's most senior advisers last weekend, had planned to post unfounded claims about top Tories.
Mr Collins issued a statement denying any knowledge of the smears campaign, saying he "found the stories and reports of the last week absolutely disgusting".
The news comes as new polls show support for Labour has slumped dramatically in the aftermath of the smear scandal.
One poll shows the Tories have extended their lead to 17 points, reaching 43 per cent, with Labour on 26 per cent, just five points clear of the Liberal Democrats on 21 per cent.
A separate poll found that 37 per cent of voters trusted the Government less as a result of "smeargate".
The Prime Minister has insisted that nobody else at Number 10 had knowledge of Mr McBride's emails containing the smears until they were exposed last week.
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