Sam Allardyce's position as England manager is in jeopardy after he appeared to advise fake businessmen how to circumvent Football Association (FA) rules on player transfers and negotiate a £400,000 deal for himself.

The Telegraph sent undercover reporters posing as businessmen from the Far East to meet Allardyce, who reportedly wanted to profit from the Premier League's transfer market.

In a meeting that was secretly filmed, Allardyce told them he knew agents who got around FA rules which did not allow third parties from "owning" players, saying: "You can still get around it. I mean obviously the big money's here", the Telegraph reported.

Third party ownership means an agent or an investor owns some of the financial rights to a player, so transfer fees can be paid partly to them when a player moves clubs.

The manager, who has only led England in one international fixture since he was appointed in June 2016, also had dinner with representatives of the fictitious firm in a Manchester restaurant, where he discussed when he could fly to Singapore.

During the meetings, he made indiscreet comments about the England team and his predecessor Roy Hodgson.

Allardyce said Hodgson was "too indecisive" during England's defeat to Iceland in the summer, dubbed him "Woy" and said he "hasn't got the personality" for public speaking. He also described Hodgson's assistant, Gary Neville, as "the wrong influence" who should have been told to "sit down and shut up."

He also said England's players had a "psychological barrier" and "can't cope" and even described the decision of his employers, the Football Association (FA), to redevelop Wembley Stadium as "stupid."

The FA pays Allardyce £3m year plus bonuses and will be asking questions about his judgement just weeks after his first and so far only match in charge of the national side.

An FA spokesman said: "We have asked the Daily Telegraph to provide the full facts in relation to this matter and are awaiting their response."

Neither Allardyce, his agent Mark Curtis, nor his financial adviser, Shane Moloney, have commented on the Telegraph's sting.