Regulated battery voltage drops when XBee (not pro) series 2 wakeup

Hi. I am currently supplying a XBee series 2 boards with an atmega 328p and a magnetometer with a 3V3 100mA voltage regulator. It works perfectly without sleep. However when I enable sleep, the voltage drops and the atmega keeps restarting. When I check the XBee datasheet it only says that the transmit and receive current is about 40mA so I would like to ask what is the maximum current that the XBee can take when it wake up?

That 40 mA is the peak. It just wants the current so fast that Digi has found that a 300mA supply for the PRO is required. For the Non Pro I think it was around 200mA (To handle the Inrush current.