Jacinda Ardern was asked by the Speaker to withdraw and apologise after her "simple, Simon" comment in Parliament this afternoon, aimed at National Party leader Simon Bridges.
Mr Bridges was questioning the Prime Minister about the Karel Sroubek saga during Question Time when the incident occurred.
His questions revolved around a text message sent from Richie Hardcore to the Prime Minister after the initial ruling on the Sroubek case by Immigration Minister Iain Lees Galloway commending the Government on the decision to grant Sroubek, a Czech national, residency.
In November Immigration New Zealand (INZ) found Sroubek, a drug smuggler serving time in a New Zealand prison, is now liable for deportation after Immigration Minister Iain Lees Galloway had earlier said the case file provided by INZ when he first made the decision to let Mr Sroubek stay "may not have provided a complete picture".
"Is this the only text message she's received from Richie Hardcore while Prime Minister, one solitary text message about Karel Sroubek?" Mr Bridges asked.
Ms Ardern responded that she knows Mr Hardcore through a range of his "functions and roles" and that this was the only communication she had with him on Sroubek and there were no conversations on the matter between the two as it would be inappropriate.
She finished her answer by saying: "The member very well knows that the minister himself [Iain Lees-Galloway] made the decision one afternoon with officials in the room after no conversations with any members of Parliament.
"It's quite simple Simon," Ms Ardern said emphasising the final two words.
The cheeky dig got loud laughs from her fellow Labour MPs but drew the ire of Speaker Trevor Mallard who forced the Prime Minister to withdraw and apologise before Question Time continued.