He maintained, however, it was "not true" there was any agreement that in return for the Murdochs' support of the Government he would help their business interests or allow the BSkyB merger to go through.
Asked whether he was embarrassed that he was even at the party, Mr Cameron said:
The Prime Minister said he did not recall the exact details of his conversation with Mr Murdoch but that it concerned the controversy over Business Secretary Vince Cable's comments that he had "declared war" on News Corporation.
Mr Cameron said it would be "wrong" to sack Mr Hunt because his special adviser Adam Smith - who quit on Wednesday as the row grew - had been "too close" to the Murdoch empire and "acted inappropriately".
Shadow chancellor Ed Balls accused Mr Cameron of ducking an inquiry into Mr Hunt because he was afraid of the scrutiny of his own dealings with News Corporation.
Speaking to Sky News, Mr Balls said: