England manager Sven-Goran Eriksson told the News of the World newspaper that three unnamed English Premiership clubs are riddled with corruption.
The alleged corruption relates to illegal payments in transfer deals.
The Swede and his agent Athole Still are said to have named the clubs in a meeting with an undercover reporter.
Eriksson has already announced his intention to sue the paper following last week's story that he could quit the England job after the World Cup.
The News of the World does not name the Premiership clubs in question for legal reasons, but does provide a series of clues as to who they are.
These allegations of corruption come hot on heels of similar claims made by Luton manager Mike Newell.
He held talks with the Football Association on Wednesday to discuss what he has described as a "bung culture" in the game.
The FA was prodded into action by Newell's comments that he had been offered bungs, or illegal payments, by agents in the past.
In relation to Eriksson's remarks, the FA has said it will wait until it has read the story on Sunday before deciding on whether to make any official comment.
But FA board member David Dein said Eriksson was "naive" and "indiscreet".
"There's no doubt he probably regrets things which have happened over the years," said Dein, the FA's former vice-chairman.
"But is he the right man to take England forward? I think if you ask the players, they would say yes."
Eriksson is also quoted suggesting that Sir Alex Ferguson should have left Manchester United in 1999 following their Champions League success.
Eriksson is reported to have said: "After winning the treble, he should have said 'thank you, goodbye'."
Eriksson, who is under contract as England coach until 2008, was on an FA-sanctioned trip to Dubai when he is said to have been contacted by rich Arab who said he wanted to discuss a coaching job at a new football academy in the Emirate.
He is said to have told this man, a celebrated undercover reporter, that Aston Villa was for sale, that England captain David Beckham would return to play in England if Eriksson asked him to, and that striker Michael Owen was not happy at Newcastle.
Eriksson, who has never managed an English club side, is also reported to have said he would like to be paid as much as Chelsea manager Jose Mourinho, the top earner in the Premiership
The reporter in question, Mazher Mahmood, has a track record of trapping public figures in embarrassing stings.
Among other big names caught out by the "Fake Sheikh" are England rugby star Lawrence Dallaglio and the Countess of Wessex.