The prime minister has left the door open to expanding a controversial sports grants scheme to clubs that missed out.
Scott Morrison has denied the $100 million sporting grants scheme which favoured marginal seats was used for the government's political benefit.
No rules were broken in administering the scheme, he told the National Press Club in Canberra on Wednesday.
He said he would work with Treasurer Josh Frydenberg on how the government could support more projects in the future.
Nationals Party deputy leader Bridget McKenzie is under pressure to resign over the role she had in overseeing the scheme.
An auditor-general's report found then-sports minister Senator McKenzie favoured marginal and targeted seats before last year's election.
Mr Morrison defended politicians' right to overrule advice from government agencies like Sport Australia, which also had oversight of the grants.
Senator McKenzie has refused to resign but party room colleagues and the prime minister aren't guaranteeing her future.
Department of Prime Minister and Cabinet secretary Philip Gaetjens is investigating the matter.
Sport Australia warned Senator McKenzie's office about politicising the grants scheme in March last year, just ahead of the May election.
Mr Gaetjens is also scrutinising a $36,000 grant Senator McKenzie awarded to a Victorian shooting club to which she belonged.
Australian Associated Press