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Reform UK leader Richard Tice has denied claims Conservative deputy chairman Lee Anderson was offered money to defect to the party.
The Sunday Times reported Mr Anderson had told Tory activists he had been offered "a lot of money" to join a "party which begins with an R".
Mr Tice told the BBC he had held "numerous discussions with Tory MPs" but no money had been offered.
Reform UK was founded with support from ex-UKIP leader Nigel Farage in 2018.
It was created from the ashes of the Brexit Party, which Mr Farage also used to lead, and supports lower taxes and "net zero" immigration - meaning the number legally allowed to come to the UK should equal the number emigrating.
In a leaked recording published by the Sunday Times, Mr Anderson is heard saying: "There is a political party that begins with an R that offered me a lot of money to join them. I say a lot of money, I mean a lot of money."
He then goes on to talk about Reform.
The newspaper said the comment was made by the Tory MP for Ashfield at a South Cambridgeshire Conservative Association event last month.
However, Mr Tice denied the claim.
He told the BBC's Sunday With Laura Kuenssberg programme: "I'm very happy to confirm that I've had numerous discussions with a number of Tory MPs, ministers, former ministers, who are absolutely furious with the complete betrayal of the government's promises, furious with the failure to stop the boats, furious with opening the borders to mass immigration.
"Obviously I will keep those discussions completely confidential but let me make it absolutely clear, no cash or money has in any way been offered, what has been offered is the chance to change the shape of the debate."
The BBC has been told Mr Anderson contacted Tory Party officials with the allegation in February and they contacted the party's chief whip.
Commons Speaker Sir Lindsay Hoyle was then informed.
A parliamentary official said: "The party should now pass any evidence it might have to the police which is the appropriate authority to deal with it."
Mr Anderson has been contacted for comment.
The outspoken MP, who was appointed Tory deputy chairman in February, has often attracted attention for his views on issues including immigration and poverty.
Earlier this month, after the Supreme Court ruled the government's Rwanda plan was unlawful, he suggested ministers should "ignore the law" and start sending asylum seekers there.
Although popular with some on the right of the Tory Party, Mr Anderson was criticised after suggesting people should learn to cook and budget, rather than use food banks.
Reform UK has only taken a small proportion of the vote in recent by-elections.
However, some Tories are worried the party could capitalise on concern over record levels of migration, as well as the number of people crossing the Channel in small boats.
In an interview with the Mail on Sunday, Prime Minister Rishi Sunak warned against disaffected voters abandoning the party.
"A vote for everyone who is not a Conservative is a vote to put [Labour leader] Keir Starmer into office," he told the newspaper.
"The question for people who care about tackling migration, who want to get our taxes down, who think we need to have more common sense in our discourse is: do you want Keir Starmer or me to be your prime minister?"
Mr Anderson made a similar argument in the recording published by the Sunday Times, saying: "If you vote Reform, you give the Labour Party a chance to win."