Watford are under investigation for providing a forged bank letter to the football authorities, according to the Daily Telegraph.

The said letter was submitted to the Football League (now EFL) before the club's 2014-15 promotion-winning campaign to prove that then future owner Gino Pozzo had enough funds to bankroll the club.

The alleged fake letter was made to address EFL from one of the world's largest banks HSBC. The Telegraph has obtained a copy of the letter and has supplied it to the bank and the police.

The Hornets now face a potential fine and a deduction in points.

An EFL spokesman said: “We can confirm, following receipt of information from The Daily Telegraph, that we immediately commenced a disciplinary investigation into serious allegations made against Watford Football Club.

“The club has been formally contacted by the EFL and is now required to provide a full and detailed response to the allegations. Once that response is received, it will be fully considered by the EFL and appropriate action will be taken under our rules and regulations."