Due diligence was carried out on Sam Allardyce before his appointment as England manager, says Football Association chairman Greg Clarke, reports BBC Sport.
The 61 year old left his role in September after 67 days in charge following a newspaper investigation claiming he offered advice on how to "get around" rules on player transfers.
Asked by MPs whether the FA looked into previous allegations against Allardyce made by a 2006 BBC Panorama programme, Clarke said no significant issues were found.
The chair of Commons Select Committee, Damian Collins MP, told Clarke on Monday it was an "institutional failure" if the FA did not fully examine the former England manager's background.
Allardyce's stint as England manager lasted only one match following his appointment in July.
Clarke said the FA is still waiting for the Daily Telegraph and police to release the full information from their investigation.
Answering questions from MPs at a Commons select committee into football governance, Clarke said Allardyce was given a pay-off when he left England, but refused to disclose the sum.