A Fianna Fáil spokeswoman said last night the question of disciplinary proceedings in relation to Mr O'Flynn did not arise because yesterday's libel case was taken in the civil courts.
She said Mr O'Flynn had indicated that he would not be appealing the ruling, so the decision stood.
Mr O'Flynn was first elected to the Dáil for Cork North Central in 1997. He is chairman of the Joint Oireachtas Committee on Communications, Marine and Natural Resources.
He was at the centre of controversy in 2002 after he launched an attack on asylum-seekers, calling them "spongers and freeloaders".
Fine Gael at the time called on the Taoiseach to expel Mr O'Flynn from Fianna Fáil as a result.
In his comments, Mr O'Flynn said: "We are against spongers, the freeloaders, the people using the system. I'm saying we will have to close the doors. The majority of them are here for economic reasons, and they are thumbing their noses at Irish hospitality and demanding everything under the guise of the Geneva Convention, while the taxpayer is paying for it all."
The Taoiseach, Mr Ahern, distanced the party from the comments, and said he rejected them.