Blogger Alex Au has agreed to take down the offending blog post and comments, as well as put up an apology to Prime Minister Lee Hsien Loong.
Responding to media queries on Friday, he confirmed that he received a letter of demand from Senior Counsel Davinder Singh, who is representing PM Lee. The letter had said that parts of a blog post he wrote on the deal between PAP town councils and the firm Action Information Management (Aim), together with 21 comments from readers, had defamed the Prime Minister.
"I will accept that they are defamatory and will take them down as requested, and put up a letter of apology," he said.
He added though that the episode should "not distract from the issue of the sale of town council software to Action Information Management".
"From what has been disclosed so far, reasonable people would have many questions, and while news of me getting a lawyer's letter might be temporarily more 'newsy', it is more important for Singapore that these questions be answered, not avoided," said Mr Au.