10:47AM BST 03 Jul 2011
West Ham, relegated from the Premier League at the end of last season, were awarded the right last to move to the new stadium after the 2012 games, beating Tottenham in the process.
A report in The Sunday Times claimed that secret payments had been made to an executive on the Olympic Park Legacy Company (OPLC), the body which unanimously made the decision, during the selection process.
"The suggestion of 'secret cash' in the Sunday Times article is absolutely and categorically denied," West Ham said in a statement on its website.
"As such, legal action is being taken against the Sunday Times, as well as Tottenham Hotspur."
The paper said the executive, Dionne Knight, had been paid £20,000 before and after the decision was made. West Ham said Knight's work was in relation to the procurement of a construction partner after the Olympics.