The Former New York Mayor is a member of Trump's legal team

The former Mayor of New York has revealed that the US President reimbursed his personal lawyer for a $130,000 payment used to keep porn star Stormy Daniels quiet before the 2016 election.

Rudy Giuliani has recently joined President Donald Trump’s legal team.

President Trump has previously insisted he was unaware of the hush money handed to the adult actress to buy her silence over their alleged affair.

In February, President Trump’s personal lawyer Michael Cohen talked publicly about making the payment – claiming he had used his own money.

Affair

Stormy Daniels - real name Stephanie Clifford - exits federal court in Manhattan, 16-04-2018. Image: Louis Lanzno/Sipa USA

Daniels claims she had sex with Mr Trump in 2006, months after his third wife gave birth to his youngest child.

Former New York mayor Giuliani told Fox News' Hannity programme that Mr Trump's payment to Mr Cohen "is going to turn out to be perfectly legal" because "that money was not campaign money."

Asked if President Trump knew about the arrangement, Mr Giuliani said: "He didn't know about the specifics of it, as far as I know. But he did know about the general arrangement - that Michael would take care of things like this, like I take care of things like this for my clients.

"I don't burden them with every single thing that comes along. These are busy people."

"Blatantly lied"

Daniel’s lawyer said Mr Giuliani’s comments prove the President Trump “blatantly lied” about the payment adding, “This should never be acceptable in our America. We will not rest until justice is served.”

Defamation

Michael Avenatti, Stormy Daniels' attorney, leaves federal court in New York after a hearing for Michael Cohen, President Donald Trump's personal attorney, 26-04-2018. Image: Mary Altaffer/AP/Press Association Images

Daniels is suing Mr Cohen for defamation after he questioned her story about the alleged sexual encounter.

The 39-year-old - real name Stephanie Clifford - says she had unprotected sex with Mr Trump after he invited her to his hotel room, then pulled his trousers down.

She is seeking to be released from the $130,000 non-disclosure agreement she signed shortly before the 2016 presidential election to stay quiet about the alleged affair.

Mr Cohen admitted to making the payment – however he insisted President Trump was not part of the transaction and expressed doubt over Daniels' story, demanding that she "cease and desist."

In court documents filed in Los Angeles, Ms Daniels' attorney said: “Cohen meant to convey that Ms Clifford is a liar, someone who should not be trusted, and that her claims about her relationship with Mr Trump is 'something (that) isn't true.’”

Daniels' lawyer, Michael Avenatti, has said he is holding back further details of the alleged affair, including the contents of a data disc he tweeted a picture of recently, for strategic reasons.