Defence Secretary Liam Fox has apologised for making a mistake in allowing "distinctions to be blurred" in his working relationship with former flatmate Adam Werritty.
In a statement released on his return to London, Dr Fox conceded that his "frequent contacts with him may have given an impression of wrongdoing".
The beleaguered Tory also accepted that their close ties my have given outsiders the "misleading impression that Mr Werritty was an official adviser rather than simply a friend".
He said: "I accept that it was a mistake to allow distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend. I am sorry for this.
"At no stage did I or my department provide classified information or briefings to Mr Werritty or assist with his commercial work - let alone benefit personally from this work.
"Nevertheless, I do accept that given Mr Werritty's defence-related business interests, my frequent contacts with him may have given an impression of wrongdoing, and may also have given third parties the misleading impression that Mr Werritty was an official adviser rather than simply a friend. I have learned lessons from this experience."
Dr Fox has apologised to Prime Minister David Cameron, who is poised to make a decision on his fate on Monday after receiving a report into the controversy.
The Defence Secretary added: "I accept that with the benefit of hindsight I should have taken much greater care to ensure that any meetings with Adam Werritty, at which defence and security related issues were raised, were properly attended by officials and recorded - to protect myself and the Government from any suggestion of wrongdoing.
"I have apologised to the Prime Minister and agreed with my permanent secretary to put in place new procedures to ensure that this does not happen again."
Dr Fox insisted he will "answer all questions in the House of Commons" following demands by Labour for him to make a full statement.
Defence Secretary Liam Fox has apologised for making a mistake in allowing "distinctions to be blurred" in his working relationship with former flatmate Adam Werritty.
In a statement released on his return to London, Dr Fox conceded that his "frequent contacts with him may have given an impression of wrongdoing".
The beleaguered Tory also accepted that their close ties my have given outsiders the "misleading impression that Mr Werritty was an official adviser rather than simply a friend".
He said: "I accept that it was a mistake to allow distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend. I am sorry for this.
"At no stage did I or my department provide classified information or briefings to Mr Werritty or assist with his commercial work - let alone benefit personally from this work.
"Nevertheless, I do accept that given Mr Werritty's defence-related business interests, my frequent contacts with him may have given an impression of wrongdoing, and may also have given third parties the misleading impression that Mr Werritty was an official adviser rather than simply a friend. I have learned lessons from this experience."
Dr Fox has apologised to Prime Minister David Cameron, who is poised to make a decision on his fate on Monday after receiving a report into the controversy.
The Defence Secretary added: "I accept that with the benefit of hindsight I should have taken much greater care to ensure that any meetings with Adam Werritty, at which defence and security related issues were raised, were properly attended by officials and recorded - to protect myself and the Government from any suggestion of wrongdoing.
"I have apologised to the Prime Minister and agreed with my permanent secretary to put in place new procedures to ensure that this does not happen again."
Dr Fox insisted he will "answer all questions in the House of Commons" following demands by Labour for him to make a full statement.