However, Little also took the step of assuring some MPs they will not come a cropper to his promise to get Jackson a high place on the list.
He told Fairfax he would expect MPs such as David Parker, Trevor Mallard and Kelvin Davis to be above Jackson - a change in tune from earlier in the day when he refused to say whether he wanted Jackson ranked higher than others.
Mallard would be Speaker if Labour was in Government and Parker is an important figure in the caucus. Davis is an electorate MP but faces a challenge from Mana leader Hone Harawira to win the seat back.
The backdown indicates Little came in for criticism over his handling of the situation, which appeared to blindside many in caucus.
The fallout from the announcement has turned into an unwanted distraction for Little to deal with in the first week of Parliament.
Some Labour members are circulating an open letter calling on Labour's Council to reject Jackson's candidacy.
Jackson is also supportive of charter schools and has criticised Education Spokesman Chris Hipkins over the issue. Hipkins refused to endorse Jackson, saying it was not his job to endorse or criticise any possible candidate.
It has been picked up on by Labour's rivals in Parliament. Prime Minister Bill English joked it could be a chapter in a book on "Lessons in Leadership" by Little: "Chapter 2 is 'how .. I picked a star political candidate and united the Labour Party.'"
The Maori Party had been in talks with Jackson about standing for them until Jackson broke the news to them last week.
Maori Party co-leader Marama Fox also had some fun with it, saying Little should ask Jackson about charter schools when Little was talking about educational achievement in Parliament's opening debate.