Actress Stephanie Clifford, who uses the stage name Stormy Daniels, has said the affair with Trump began in 2006 and lasted several months.
A letter from the pornographic actor's lawyer Michael Avenatti to Trump's personal lawyer, Michael Cohen, on Monday offered to pay the $130,000 (£93,000) into an account of the president's choosing by Friday.
Signed by Clifford's attorney, Michael Avenatti, the letter gives Cohen until 12:01 p.m. Tuesday to respond before the offer is withdrawn.
On Monday, Avenatti sent a letter on Clifford's behalf to Cohen's law firm in NY, offering to return the $130,000 on March 16 "to resolve all pending disputes, including the lawsuit and arbitration", according to the letter shared by multiple news outlets.
I'm confident a GoFundMe campaign to raise a 130K for Daniels-I'm guessing she spent the money Cohen paid her in October-would be a success.
WASHINGTON-President Trump is probably powerless to stop 60 Minutes from airing an interview with the porn star who claims to have had an affair with him, according to legal experts.
Avenatti's proposal to Cohen requires the signatures of "all parties", including the president, The New York Times reported.
Trump's very public admission things aren't all they seem comes after allegations by porn star Stormy Daniels she had a secret affair with the POTUS. Cohen did not explain why he made the payment or say whether Trump was aware of it. The interview, with 60 Minutes, the CBS news programme, could be aired as soon as Sunday. Last week, White House press secretary Sarah Huckabee said "arbitration was won in the President's favor", language that suggested Trump was involved. Although a judge might rule that Daniels must stay quiet until the lawsuit reaches a conclusion, an injunction would not undo the interview she gave last week or compel CBS to pretend it didn't happen.
Both Clifford's recent lawsuit and her offer of reimbursement seem to be moves aimed at paving the way for her to speak publicly, and at length, about her alleged affair with the president.