In a statement, Cable said he fully accepted Cameron's decision, adding: "I deeply regret the comments I made and apologise for the embarrassment that I have caused the government."
Discussing News Corporation's bid, Cable told the undercover reporters: "I have blocked it, using the powers that I have got. And they are legal powers that I have got.
"I can't politicise it, but for the people who know what is happening, this is a big thing. His whole empire is now under attack. So there are things like that, that being in government... All we can do in opposition is protest."
Murdoch owns Britain's top-selling daily newspaper, The Sun, which backed Cameron's Conservatives in the elections in May.
The mogul was also reportedly one of the prime minister's first visitors when he took office after the vote.
A spokesperson for News Corporation had earlier said that it was "shocked and dismayed" by Cable's remarks, adding: "They raise serious questions about fairness and due process."
The Daily Telegraph first published remarks Tuesday by Cable indicating he could quit and "bring the government down" if the centre-left Liberal Democrats is pushed too far in compromising with the centre-right Conservatives.
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