Kylie Minogue’s promoter has denied reports she requested $750,000 to appear in an ABC ad campaign to help the broadcaster secure more federal funding.

Fairfax Media reported exclusively on Wednesday that ousted ABC chairman Justin Milne had pushed for the pop star to appear in the ad campaign.

The idea was discarded because the pop star was going to charge $750,000, Fairfax reported. Former ABC managing director Michelle Guthrie reportedly “hit the roof” when she heard of the proposal.

But Michael Gudinski, Minogue’s promoter, told News Corp on Wednesday the story was “unfactual”.

“It’s an absolute disgrace [the ABC] used Kylie’s name because of some internal politics and a document that must have gone around,” Mr Gudisnki was quoted as saying. “I’m horrified.”

An ABC spokesperson told News Corp the $750,000 sum was the production costs involved in televising a Minogue concert.

“The $750,000 figure which has been reported today was not a fee but a preliminary estimate of production costs for a potential project which never went ahead. At no point did the ABC discuss any payment with Ms Minogue,” the ABC spokesperson told News Corp.

The focus of Fairfax’s original story was on Mr Milne’s backing of the idea.

He was forced to resign last week after public backlash to his role in the firing of Ms Guthrie – and because of his alleged interference in the running of the ABC to benefit the Coalition government. He denies the claim.

Of the Minogue plan, Mr Milne told Fairfax: “It wasn’t my idea. An emotional campaign with Kylie singing a song … I thought that could be cool.”

The ABC did eventually launch a star-studded promotional campaign that included testimonials from famous Australians such as Guy Pearce, Tim Minchin, Jimmy Barnes, and Rove McManus.

The Kylie Minogue claims are just the latest in a string of leaks that followed the sacking of Ms Guthrie. Public pressure eventually forced Mr Milne to resign.

His departure has increased scrutiny of the ABC board. There are accusations that the Coalition government has, against the recommendations of its own advisory board, appointed several ABC directors without media experience.

Currently, only one of the seven board members – Peter Lewis – has media experience, aside from staff-elected member Jane Connors. Her background includes roles in ABC Radio and advisory work for history-focused organisations.

Former Liberal communications minister Neil Brown has called for the remaining seven ABC directors to quit.

Mr Brown, a former member of an independent panel that assesses nominations for the ABC and SBS boards, says the Coalition had basically ignored the nomination panel’s recommendations.

“They came to be directors of the ABC by a nominations system which is more honoured in the abuse than application of it,” he told Fairfax Media on Tuesday.

The existing ABC board lacked legitimacy and should resign, Mr Brown said.

ABC board member Kirstin Ferguson, who has a background in the military, law and mining, has taken over as the organisation’s acting chair.

-with AAP