Reports allege that Boris Johnson was told to stop discussing his financial arrangements with Richard Sharp, who was later appointed as the new BBC chairman.
Sharp is also accused of having helped Johnson secure a loan shortly before being put forward for the BBC job.
This has led to calls for his resignation, although he maintains that there was no impropriety during the selection process.
As per The Sunday Times, former UK Prime Minister Boris Johnson was advised by officials to stop talking to Richard Sharp about his personal finances just days before Sharp was announced as the new BBC chairman.
The former banker and current chair of the BBC had introduced Sam Blyth, a cousin of Johnson, to Cabinet Secretary Simon Case to discuss whether Blyth could act as a guarantor for a loan facility for the prime minister.
Sharp is now facing calls to resign from his role after helping Johnson to secure a loan before being appointed as the BBC Chair.
Both Johnson and Sharp deny any wrongdoing.
Labour has attacked the UK's Chancellor of the Exchequer, Rishi Sunak, for failing to "stop the rot" in politics after it emerged that Sharp had helped Johnson secure an £800,000 line of credit.
Meanwhile, the Times published a leaked letter, stating that then Prime Minister Johnson was warned about discussing his personal finances with Sharp.
Johnson's spokesperson has denied that any financial advice was sought from Sharp.
Michael Gove, a senior conservative politician, suggested that waiting for all the facts to emerge would be advisable before drawing any conclusions.
Sharp has maintained that there was no impropriety during the selection process to become the new BBC chairman.
The BBC Chairman is due to appear before MPs next month to respond to these allegations.