The News Corp chairman, 81, denied asking or being offered any favours when he met then Prime Minister Margaret Thatcher at a lunch in 1981.
He denied trying to influence her by demonstrating his political allegiance ahead of his bid for Times newspapers.
Meanwhile, Culture Secretary Jeremy Hunt's special adviser Adam Smith has quit over his dealings with News Corp.
Mr Hunt is due to make a statement at 12:30 BST in the Commons following evidence by Rupert Murdoch's son James to the inquiry on Tuesday.
His testimony revealed details of contacts between Mr Smith and senior figures at News Corp, while the firm was bidding to take control of BSkyB.
Mr Hunt has rejected calls by Labour to resign.
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