The Walkley Foundation has rescinded the finalist status of Seven's Spotlight story 'Trial and Error' for the 2023 Walkley Awards, following revelations of an exclusivity agreement with Bruce Lehrmann that included paying his rent for 12 months.

The decision was made after the Foundation's Board unanimously concluded the story was ineligible for consideration in the All Media Scoop of the Year category.

Documents reviewed by the Board revealed an agreement between Seven and Lehrmann, which included a leasing arrangement providing Lehrmann with 12 months of accommodation from 13 April 2023 to 12 April 2024. Media reports suggest Seven paid Lehrmann's rent for a year in exchange for exclusive access to him. The interview was featured on Seven's spotlight investigations program, which began airing in Australia on 4 June 2023.

The rent arrangement was revealed in court hearings last week, where Lehrmann is suing Network Ten and former host of The Project, Lisa Wilkinson, for defamation. His case is based on a story aired on The Project in February 2021 and spearheaded by Wilkinson which outlined Brittany Higgins' allegations that she was raped in Parliament House by senior colleague in March 2019. The program did not name Lehrmann, however he has alleged he was identifiable from the program due to details provided.

As has now been noted in several mass media reports, documents released show Seven agreeing to pay $4000 per fortnight to cover the costs of Lehrmann's accommodation in return for an exclusive interview deal across a period of 12 months.

In a statement, The Walkley Foundation said its decision to revoke the story's finalist status in the 68th Walkley Awards was based on the fact these payments were not accurately disclosed in Seven's submission.

"It is the responsibility of The Walkley Foundation management to determine the eligibility of entries for consideration by the judging panels in each round of judging for the Walkley Award," the statement read. "Following a review of these documents, The Walkley Foundation Board has come to the unanimous conclusion that the Seven Spotlight story 'Trial and Error' was not eligible for consideration in the All Media Scoop of the Year category for the 2023 Walkley Awards as the entry did not accurately describe the extent of benefits provided to Mr Lehrmann in exchange for interviews, information and exclusive access."

The Federal Court hearing between Lehrmann and Network Ten is expected to continue into mid-December. Lehrmann has continued to deny the allegations of rape during and after a trial into the case was aborted earlier this year.