The Prime Minister did not pull a television presenter's hair, but he did touch it, says TVNZ.
Lenska Papich, TVNZ Communications Manager said following media inquiries about an alleged hair-pulling incident, the company had been unable to find any evidence any employees had complained about John Key pulling their hair.
"We can only assume the speculation relates to a joke between the Prime Minister and a TVNZ presenter some two years ago.
"In the interest of transparency, we can advise a TVNZ presenter dared the Prime Minister to help style the presenter's hair and the Prime Minister briefly accepted the challenge.
"The presenter was completely comfortable about what has been described as 'a mutual joke between friends'."
Key said rumours that he pulled a woman's hair during a visit to TVNZ two years ago were "simply just not true".
Leaving the House after giving his speech on the Budget this afternoon, Mr Key said he was "absolutely confident" he had acted "thoroughly professionally" at TVNZ.
"There's obviously been these stories running around, they're simply just not true.
"I'm not going to go into the particular thing except to say I've acted totally professionally and I'm totally confident in what I've done."
The incident follows Key's apology for pulling the ponytail of a waitress last month.
A political storm erupted after the waitress posted an anonymous letter on the website The Daily Blog on Wednesday, saying Mr Key had behaved like a "schoolyard bully".
Mr Key said he completely misread the situation where he repeatedly pulled the hair of the waitress at the cafe in Auckland.
Mr Key was filmed pulling a girl's ponytail on the programme Campbell Live in 2014: