Updated 10.55am
Terry Muscat has suggested she will drop the police report and the threat of legal proceedings against the team of comedy show Bajd u Bejken if they donate some of the proceeds from the show to charity.
Earlier on Thursday, Muscat had threathened to take legal action against the team of comedy show Bajd u Bejken unless they donated "all the money" made from a controversial show to charity.
In a Facebook post on Thursday morning, Muscat said she will be taking legal action against Bajd u Bejken but was prepared to retract that if all money made from the show, "without deducting any expenses" is donated to Puttinu Cares.
"That way they will learn the lesson they deserve," Muscat said.
Later on Thursday morning she updated her message asking for just a part of the proceeds from the three-day show to be donated, not all the money.
"Maybe I rushed," she said, adding that she had "no intention to blackmail anyone". She insisted the donation should be made today.
The incident was sparked by a comedy show, from which the duo "profited from ticket sales of an audience of some 1,200 people".
She added that she was also prepared to meet the team "face to face" if they accepted her conditions "in a civilised and respectable manner, to clarify everything and close this matter in a mature way."
"The ball is now in your court," she concluded.
The now infamous episode of the comedy skit Bajd u Bejken, which showed an image of a transgender person edited with male genitalia, has led to the resignation of its co-host JD Patrick, who apologised for the "hurt" caused to Muscat.
However, he denied the podcast was transphobic.
Police contacted the podcasters about the incident where audience members were shown three nominees for the award of 'Best Anus'. Model Rachel Thake, PN MP Karol Aquilina and Muscat. An image beneath Muscat's photo showed a rear shot of a person with a penis.
Muscat slammed the photo saying it had "destroyed" her. She later accepted the apology but said "it was not enough".
The incident has sparked contrasting reactions over the limits of freedom of speech and decency.