"I would argue that Lawrence is a victim of the media's own narrative, right. He wanted to do it, wanted it to be true even because they all wanted it to be true," Gutfeld said on "The Five."
O’Donnell admitted Wednesday that he aired information that “wasn’t ready for reporting” and broke NBC News regulations in the process.
“Had it gone through that process, I would not have been permitted to report it. I should not have said it on air or posted it on Twitter. I was wrong to do so,” O'Donnell said.
The retraction and apology came after Trump's legal team sent a letter to NBC demanding an apology and retraction.
Gutfeld argued that O'Donnell and other media members aren't really sorry for highlighting an unverified, untrue report but are worried that it hurts further accusations levied against the president.
"They worry that it put a cloud on all the future accusations that they are priming [against Trump]," Gutfeld said.
The "Greg Gutfeld Show" host pointed out that critics in the media and the left are unwilling to drop the Russia collusion narrative.
"They're never going to get over the Russia thing and they're mad that this kind of put a cloud over it," Gutfeld said.
Fox News' Brian Flood contributed to this report.