Concerned its reputation has been damaged by the issuing of a denial it was later forced to retract, the English Football Association is to hold an inquiry into the circumstances of the involvement of Sven Goran Eriksson and its chief executive Mark Palios with a female secretary.

There is widespread anger among the 12-member FA board that the English game's ruling body has been made to look foolish by last week's public denial that the England manager had had an affair with Faria Alam.

After issuing a statement denying Eriksson had been involved with Alam, the FA admitted he did have an affair with her and she had also been involved with Palios earlier.

Geoff Thompson, the English FA chairman, spent most of yesterday speaking with board members by phone and said the inquiry will seek all the facts before decisions are made on the futures of Eriksson and Palios.

The board is not scheduled to convene until August 26th, but an emergency meeting is expected to take place within a week.

Thompson, the inquiry's overseer, will speak to the FA's lawyers, who issued last week's denial, and officials to establish who spoke to whom and what, if anything, was said by Eriksson, Palios and Alam.

While the FA board admits the private lives of Eriksson and Palios are none of its concern, the members are angry the ruling body threatened to use legal action to fight their corner.

An FA spokesman yesterday refused to confirm or deny rumours that Alam had an affair with a third FA executive.

Board member Dave Henson said yesterday: "It makes us look like idiots because there was a denial and then we are told that it did happen. We are left looking like mugs and that can't be right. We have been left high and dry. There's so many questions to answer and we will be expecting those to be answered this week. For an outsider looking in, it doesn't paint a very good picture."

Another board member, who did not wish to be named, said: "We have two men who are not attached to anyone, they are not married and they are free to do what they want. But the difference is that this has been left at our doorstep and the FA has become involved.

"There is great concern about the publicity because it's very embarrassing for the FA and very negative for the game in general.

"The feeling is that we should investigate this matter fully and get the facts before the board makes any decisions. You can't sack anyone until you have all the evidence and that is what we will be looking to gather."

Another board member said: "We need to establish what led the FA to become involved in this sorry mess and why. It's hugely embarrassing."

Eriksson, on holiday in Sweden, is not expected to return until next week, when an emergency FA board meeting may take place. It is understood he spoke with Thompson yesterday and also had words with FA officials last week, after news of the affair with Alam broke.

The FA board is particularly keen to establish who told its lawyers to issue a denial and what the thinking was based on. Alam, a personal assistant to the FA's executive director David Davies, had insisted to lawyers that no affair with Eriksson had taken place and those who spread such rumours might face legal action.

The FA stated yesterday the scandal had had no effect and that officials were confident both men would continue in their jobs. "It's business as usual and we are continuing with the running of English football," a spokesman said.