Karima El-Mahroug said she had “made up” details about er***c parties held at his villa while Silvio Berlusconi was still Italy’s prime minister.
She was testifying at the trial of three former Silvio Berlusconi aides accused of soliciting prostitutes for him.
Silvio Berlusconi is being tried separately on charges of paying for underage s** with Karima El-Mahroug.
Both the dancer and Silvio Berlusconi have denied the allegations.
Karima El-Mahroug is not charged with any crime in either case and is formally recognised in both as an injured party.
On Friday, Karima El-Mahroug appeared as a witness at the trial of TV presenter Emilio Fede, celebrity agent Lele Mora and Nicole Minetti, a local councilor and former showgirl.
They are accused of providing prostitutes for Silvio Berlusconi’s so-called “bunga-bunga” party evenings.
Karima El-Mahroug, known as “Ruby the Heart Stealer”, told the court she had lied about receiving 187,000 euros from Silvio Berlusconi for attending several of his parties.
She said she “made up” the sum to show off.
The dancer also went back on testimony that young women had bathed n**ed at Silvio Berlusconi’s residence, saying they had only stripped off to their lingerie and there had been “no contact” with the ex-PM.
“I am sorry I talked nonsense when I spoke to prosecutors,” said Karima El-Mahroug who is thought to have been aged 17 when she went to the parties.
“The majority of the things I said were not true.”
Prosecutors are expected to make their closing statements on May 31.
Meanwhile, a verdict in Silvio Berlusconi’s trial on charges of sleeping with an underage prostitute is due on June 24.
Earlier this week, a prosecutor who requested a six-year sentence and a lifelong ban from office, said she received threats including a letter with two bullets.
Silvio Berlusconi already faces a four-year prison sentence and five-year ban from public office for a fraud conviction.
He is expected to appeal against the verdict to Italy’s highest court, the Court of Cassation.
Earlier this month Italian prosecutors requested a new corruption trial against Silvio Berlusconi, saying he had allegedly bribed a left-wing senator to defect to his right-wing People of Freedom party (PDL) in 2006.
Silvio Berlusconi claims he is the victim of a campaign by left-wing magistrates.
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