Enda Kenny has rejected any suggestion Michael Noonan should quit over his involvement in Project Eagle.
The disputed Public Accounts Committee report on the controversial transaction between Nama and US investment fund Cerberus criticised the finance minister, claiming it was not "procedurally appropriate" for him to meet senior Cerberus representatives the day before the Project Eagle bid closing date.
The Taoiseach, who is in Washington for his annual St Patrick's visit, said Mr Noonan had acted "entirely appropriately" throughout.
Mr Kenny also questioned why the minister was not asked directly about the issue when giving evidence to the committee.
"The PAC has always been an independent committee of the Oireachtas and I respect that, but Michael Noonan has acted entirely appropriately in this matter," he said.
"He went before the committee in a voluntary capacity, he spent five hours in front of the committee, he was asked no question about this and clearly his own letter that is included in the report points out the distinction between the role of the minister for finance and the commercial activities of Nama.
"Michael Noonan has acted entirely appropriately here.
"I don't wish to make any comment of the activities of the public accounts committee except to say that this is a dispute report."
Mr Noonan has said he was disappointed that "unjustified and unfounded views" made their way into the final report.
"I refute absolutely the validity of any suggestion that I or my officials acted inappropriately in meeting with Cerberus in March 2014," he said.