Brazil's national football coach Luiz Felipe Scolari is the subject of a criminal investigation in Portugal, the country's authorities have said.
The Portuguese attorney general's office confirmed in an email to The AP news agency that an inquiry has opened but provided no details.
However, unconfirmed reports in Brazil and the Netherlands say Scolari is suspected of failing to declare €7m in income while managing Portugal.
According to the Brazilian newspaper Folha de Sao Paolo, the money was allegedly deposited in offshore accounts.
Scolari, 65, who managed Portugal between 2003 and 2008, has strenuously denied the claims.
"I have correctly filed all my tax returns. In all the countries where I've worked, I've always declared my income," he said in a statement.
"If anything is wrong, it's not my fault. I hope justice gets to the bottom of the facts."
Scolari was in charge of Portugal for five yearsOfficials at the Portuguese Football Federation, which employed Scolari as national coach, could not immediately be reached for comment.
If the Portuguese authorities decide to file charges, Scolari would have to answer in a Portuguese court.
Tax evasion concerning large amounts of money carries a prison sentence in Portugal.
News of the investigation comes a month before the World Cup kicks off in Brazil.
Scolari won the World Cup with host nation in 2002 and is tipped to repeat the feat this summer.
He was appointed Brazil manager for the second time in 2012 and led them to victory in the 2013 Confederations Cup.
He left Portugal in 2008 to take over as Chelsea boss but was fired after six months following a run of poor form.
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