Pascal Chimbonda's agent Willie McKay has revealed that he gave the Tottenham full-back an £18,000 loan shortly after he joined Tottenham from Wigan.
Chimbonda, 28, was arrested and questioned by City of London police on suspicion of conspiracy to defraud and bailed until October.
But McKay has defended the loan to Chimbonda and admitted that he has made similar loans to other players.
'Pascal had just joined Spurs and was a bit short at the time, so I gave him some money, 'said McKay. 'He rang me up and asked if I could lend him £18,000 so I said `no problem, just come up and get it.'
'I didn't want to give him cash so it was a cheque and he signed a bit of paper for it. They should really be calling me Father Christmas, ' he told The People.
'I have done this before for many of my players if they are short at any time. If it was underhand why would I give him a cheque from my bank account?
'I am amazed that this information has been leaked and I wonder about the agenda of the people involved. It would be laughable if it wasn't so serious.'
The City of London police are carrying out an investigation into corruption in football that is separate to the inquiry by Lord Stevens' firm Quest.
Chimbonda, who played in Spurs' 3-1 defeat against Arsenal yesterday, was the second person to be arrested by the force's investigation team - a 61-year-old man was arrested in Manchester in March on suspicion of money laundering.
In July, officers from the City of London police carried out raids at Newcastle, Portsmouth and Rangers and took away computers and documents.
Stevens' firm Quest have carried out a lengthy investigation into Premier League transfers and the Football Association are still to decide whether any clubs or individuals will face disciplinary action for breaching regulations.