The FA have asked Liverpool to respond to revelations that they paid Manchester City £1million after the Premier League champions found their scouting system had been hacked.
The Reds decided to settle with City in 2013 after staff at the Manchester club found their network had been illegally accessed.
Liverpool's sporting director and two of the club's scouts who had joined the club from City are accused of involvement and the FA are demanding answers, according to the Times.
They are said to have logged in to their rivals' Scout7 database hundreds of times but Liverpool insist the claims are misleading.
The governing body are assessing whether there is a case against Liverpool to follow up, although their research has not been deemed to be an investigation at this point.
It is alleged that Manchester City scout Rob Newman had his account on Scout7 used without his knowledge by Dave Fallows, Liverpool's head of recruitment, and Julian Ward, who is the loan pathways and football partnerships manager are the individuals alleged to be involved.
In the confidential settlement, the breach is said to have taken place between June 2012 and February 2013.
Both Liverpool and their staff members accused of wrongdoing have not accepted liability despite the seven-figure settlement.
City have provided the FA with evidence from their side which entail the findings of a forensic computer expert who helped with their case.
They have written to Liverpool for their response to those findings.
Given that the two clubs, who lead the charge for the title this season, came to an agreement without the FA, they would have to find that there was a breach in their rule that 'each club shall behave towards each other club and the league with the utmost good faith'.
When the initial findings were uncovered, Liverpool's response was: 'Liverpool Football Club does not provide any comment on any allegations relating to legal agreements it may or may not have entered into with any other club, organisation or individual.'