NEWCASTLE United has been raided and an employee - reported to be managing director Lee Charnley - has been arrested in a £5m fraud investigation by Her Majesty's Revenue and Customs (HMRC).

HMRC are investigating potential fraud involving tax and National Insurance payments, and officials have raided premises at both Newcastle United and West Ham.

One hundred and eighty HMRC officers have been deployed across the UK and France today.

A source confirmed to the Press Association that Charnley was the Newcastle United staff member who had been arrested.

The Northern Echo:

Newcastle United managing director Lee Charnley

HMRC officials have been present at both St James' Park and Newcastle's Darsley Park training ground, which is situated in Benton.

Manager Rafa Benitez was at the training ground this morning when it was raided, and there were still HMRC officials present when the players arrived for training.

The investigation relates to potential offences in both England and France, and there has been cross-border cooperation between authorities in the two countries.

It is understood to be focused on player transfers between clubs in England and France, and relates to image rights, benefits and agent payments.

Both Newcastle and West Ham have signed a large number of players from French clubs in recent seasons.

A HMRC statement said: "HMRC has arrested several men working within the professional football industry for a suspected £5 million Income Tax and National Insurance fraud.

“180 HMRC officers have been deployed across the UK and France today. Investigators have searched a number of premises in the North East and South East of England, arrested the men and also seized business records, financial records, computers and mobile phones.

“The French authorities are assisting the UK investigation, have made arrests and several  locations have been searched in France.

“This criminal investigation sends a clear message that, whoever you are, if you commit tax fraud you can expect to face the consequences. As this is an ongoing investigation HMRC is unable to provide any further detail at this time.”

Northumbria Police says it is aware of an operation at Newcastle United, but stressed it was not a police matter.

Newcastle United are refusing to comment at this stage.

Newcastle were promoted back to the Premier League at the first time of asking on Monday night after beating Preston 4-1.