The AFP executed a search warrant on Seven’s Sydney office on Tuesday due to speculation the network had paid convicted drug smuggler Schapelle Corby $2 million for an interview.

In a press conference on Saturday morning, AFP Deputy Commissioner Michael Phelan defended the action saying that it was quite clear to investigators on Monday night that not all relevant materials had been provided by the network.

"Two weeks ago, just like most other Australians, the AFP watched Schapelle Corby walk out of prison flanked by security guards and chauffeured away to a villa," he said.

"So, we reasonably assumed, like I suppose most other people did, that an exclusive media deal had been done given the scuttlebutt that was going around at the time and, also, the further information that we got of where she was staying and who was staying there etcetera.

"Therefore, it was incumbent on the AFP to do what we could to see whether or not to see whether or not money had been paid for those interviews and to track down those potential profits and to see whether or not we even had enough to start an investigation, as indeed, the government has done in the past in relation to matters around Schapelle Corby.

"We have been criticised for apparently operating too swiftly and being heavy handed, but this particular circumstance or this particular case, in the past, funds were tried to be restrained in relation to literary proceeds audits and in fact went off shore and went outside the jurisdiction. Some matters are simply time critical and that’s why the AFP acted in which we did."

Seven had been issued with a production order to hand over documents to the AFP the previous week in accordance with the Proceeds of Crime Act, which prevents people profiting from crimes.

The AFP obtained a search warrant from Magistrate Graeme Curran on the basis of an application that stated, among other things, to Seven lawyer Justine Munsie: "You (Ms Munsie) are reasonably suspected of having committed the offence stated in the relevant warrant."

In a letter written to Seven lawyers, obtained by The Australian Financial Review, the AFP said: "We accept that this statement was incorrect and it should not have been made."

"It is a regrettable error, but it is an innocent word-processing error. The Commissioner and the Australian Federal Police regret any hurt, embarrassment or offence which this error has caused."

Seven had threatened to launch legal action if an apology was not issued by 5pm on Friday, as well as asking the AFP to revoke the order under the Proceeds of Crime Act.

The AFP said it would not revoke the order and that it was obvious the agency had never suspected Ms Munsie of a crime because the only reference to any offence being committed in the search warrant was to Ms Corby’s crime of drug smuggling.

"There is no reference to any offence or any suspicion of any offence having been committed in the material before Magistrate Curran in support of an application for the warrant," wrote the AFP in its letter.

"In these circumstances, we do not think there can be any real suggestion that a reasonable person would think that it was alleged that Ms Munsie was suspected of having committed an offence."

Seven West Media CEO Tim Worner said that the AFP’s comments on Saturday confirmed that the network had done nothing wrong.

‘‘The acknowledgement and apology are welcomed, and we await the results of the AFP’s internal investigation in to their handling of this matter,’’ he said.

‘‘We have been subjected to raids which were a waste of public money and a charade. We have been publicly tarnished. And it now appears the AFP confirms none of this was necessary.

‘‘Today, the AFP confirmed and stressed several times the level of co-operation it had received from Seven West Media.

‘‘Somehow, this cooperation was reciprocated with a raid on us by officers with exposed guns.

‘‘We take our role as a media company seriously. We will pursue news.

‘‘We can confirm that reports of $2million or $3 million offers for an interview with Schapelle Corby are complete and utter baloney. It is a falsehood. There is no deal now and there has never been any such deal.’’