Black is the latest name to come out of reports by the 'Telegraph' and the Southampton assistant manager allegedly told undercover journalists that they would be able to pay lower league staff in order to be able to represent their players.
The former Aston Villa caretaker manager reportedly said that a colleague at a different club would possible to pass on information about players if paid, something which is prohibited by the FA.
Southampton will now launch a investigation into the newspaper reports regarding their assistant manager.
"We have today contacted The FA and The Premier League, and intend to work closely with both bodies on this matter when the facts become clear," an official club statement read.
"Southampton Football Club is fully committed to investigating any situation that directly or indirectly relates to our club, employees or the wider community".
Meanwhile, a spokesperson for Black said: "[Mr Black] does not recall Mr McGarvey making suggestions that football officials should be paid during transfer negotiations - this was not the purpose of the meeting so far as our client understood it.
"Any suggestion that he was complicit in such discussions is false".