Sky Sports New understands the FA is considering Sam Allardyce's position as England manager and that the 61-year-old would not be surprised if he lost his job.
Sky sources report Allardyce is "deeply embarrassed" after he was secretly filmed discussing the possibility of circumventing FA rules on third-party ownership and mocking predecessor Roy Hodgson.
Allardyce, who left his home in Bolton at around 7am on Tuesday morning ahead of meetings at Wembley, intends to apologise at the earliest opportunity to Hodgson, but believes that his comments, while ill-advised, were not corrupt.
An FA insider has admitted to Sky Sports News HQ that Allardyce displayed "poor judgement" in his words and added there was disbelief at the governing body that the investigation has come so early in Allardyce's England career.
The FA's immediate priority is establishing the facts and whether Allardyce has breached any rules, with questions to be asked about the FA Ethical Code of Conduct and any conflict of interest.
According to Sky sources, Allardyce will tell FA chairman Greg Clarke and chief executive Martin Glenn that he was approached to discuss the possibility of giving a number of speeches on motivation and management - and not football. As the Telegraph points out, he is insistent that any agreement would first have to be ratified by his employers.