"I have prayed and continue to pray for God's forgiveness and grace. I also renew today my apology to the people of Arkansas," McDaniel said at a news conference in North Little Rock.
News of his relationship with Davis became public in December 2012 when McDaniel's name appeared in court documents relating to Andrea Davis' divorce.
At the news conference, McDaniel went into damage control mode to quash rumors that have swirled about his relationship with Davis and the ramifications it could have on his bid for the Governor's seat.
"There is no other shoe to drop. There are no other women. There is no litigation that was compromised, no rules of professional conduct were ever violated," he said.
Republican strategist Bill Vickery says the controversy is going to come back to haunt McDaniel one year down the road.
"It's not just the press now. It's the commercials that will be run by both Republican and Democratic opponents," Vickery said.
In an email to TalkBusiness.net, Davis writes that her reaction to McDaniel's news conference was one of "disappointment," suggesting that their relationship was more than just a limited interaction, saying, "There were over 500 text exchanges in 2011 and through February 2012."