FBI to investigate Rupert Murdoch's News Corp

"We're aware of the reports and allegations and the FBI is looking into it," a FBI spokesman said.

It comes after Peter King, a Republican US congressman and chairman of the House Homeland Security Committee, called for the investigation following a report in Monday's Daily Mirror that alleged News of the World journalists offered to pay a New York police officer for the private phone records of victims of the September 11 2001 attacks.

In a letter to Robert Mueller, director of the FBI, King wrote: "If these allegations are proven true, the conduct would merit felony charges for attempting to violate various federal statutes related to corruption of public officials and prohibitions against wiretapping. Any person found guilty of this purported conduct should receive the harshest sanctions available under law."

A spokeswoman for News Corp declined to comment, but it was not immediately clear that the FBI had notified the company.

It comes after 10 days of escalating pressure in Britain, where News Corp’s UK newspaper subsidiary, News International, faces police investigations, judicial inquiries, civil claims and a possible regulatory test of whether it is a "fit and proper" owner of broadcast licences.

Earlier, in an interview with his Wall Street Journal title, Rupert Murdoch said News Corp would set up an independent committee to investigate improper conduct, which would would be headed up by someone from outside the company.

Murdoch said tonight that he would challenge the "total lies" issued about his News Corporation media empire in the phone hacking scandal when he appears before MPs next week.

He said he wanted to address "some of the things that have been said in Parliament, some of which are total lies".

"We think it's important to absolutely establish our integrity in the eyes of the public... I felt that it's best just to be as transparent as possible," Murdoch continued.

He also expressed his full support for his son James over his handling of the phone hacking scandal in the UK.