The Minister for Education says neither he nor the Tanaiste had any involvement in the appointment of the wife of Eamon Gilmore to the post of policy specialist at the Department of Education.
Carol Hanney will move to her new role once her current job as head of Dun Laoghaire Vocational Education Committee is scrapped next year.
She will retain her current salary of €92,000.
"No political involvement"
Minister Ruairi Quinn says Carol Hanney along with 2 other VEC chief executives will advise on policy rather than political matters.
"The Tanaiste had absolutely no involvement whatsoever - nor indeed did I - in the sense that the negotiations and the terms and conditions and the specification of her redeployment as a permanent civil servant was conducted between senior officials in the Department of Education and Skills - and the 3 people involved" he added.
Under the Croke Park Agreement she is entitled to be redeployed to the new position with the same salary and conditions.
It is understood that no interviews were carried out for the new positions because it was a redeployment arrangement.