FORMER football star Paul Walsh is under police investigation after a blackmail allegation made by convicted fraudster Peter Foster.

In his first public statement yesterday the conman alleged the ex-England player, one of four directors of his slimming pill venture, had threatened to make public his property dealings with Cherie Blair.

Australian Mr Foster said he received an e-mail on November 27 from Mr Walsh, who lives in Sarisbury, demanding back the money he ploughed into the slimming firm Renuelle Ltd .

"He was demanding £75,000 or, he threatened, he would reveal that I had been party to the flat negotiations.

"With my record, he said this would hurt the Prime Minister.

"We immediately told Downing Street of this threat. This e-mail also made claims I had been boasting about the Blair relationship. I had not.

"Any information in connection with the flat negotiations that Paul Walsh obtained was, I believe, from my driver who coincidentally is Paul Walsh's father-in-law."

Mr Foster, the boyfriend of Mrs Blair's lifestyle guru Carole Caplin, said it was the ex-Pompey footballer turned property tycoon who tipped off the media.

A Scotland Yard spokesman confirmed they were investigating an allegation of blackmail made in the last week. Mr Walsh would not comment at his luxury home in Holly Hill Lane, Sarisbury Green, yesterday.

The latest twist in the long running saga comes after Mr Walsh revealed he would hand over e-mails, faxes and letters to the Metropolitan Police proving he and the other directors of Mr Foster's slimming firm were ripped off.

Talking about his forthcoming meeting with the police on Thursday, Mr Walsh said: "We've all been done up like kippers by Foster. He's a conman."

Mr Walsh described how he joined the venture under the impression Mr Foster had two million Trim-It pills in stock which had all undergone clinical trials.

"My job was going to be to go into schools and talk about them, because I was an ex-professional footballer.

"Because I was an agent, I was also going to get showbiz people involved and all that."

After he stumped up £75,000 for the venture and realised nothing was happening he asked Mr Foster for his money back.

"When I realised that nothing was happening I sent him a threatening e-mail asking for my money back, mentioning the Blairs and Carole Caplin and all that."

He added: "My worry is that he might clear off to Australia before the police can touch him, which is why we're going to speak to them as soon as we can."