The Tories took a £5,000 donation funnelled through Peterborough United FC from the club’s Canadian co-owner, the Mirror understands.
The party has been accused of taking advantage of loopholes in the law to accept donations from non-UK citizens.
Mystery surrounded cash handed to the Conservatives by the club, after chairman Darragh MacAnthony publicly denied any knowledge of the gift, saying it had "nothing to do with me."
It’s understood the source of the donation was Randy Stewart Thompson, who owns a stake in the club through Canada-based Kelgary Sports and Entertainment, alongside Mr MacAnthony and fellow Canadian Jason Neale.
Mr Thompson previously donated £5,000 to the Tories in 2021, through his UK-based firm Cooper Quinn Holdings.
The Electoral Commission investigated the donation - which was eventually approved - because the firm had been removed from the Companies House register after failing to submit paperwork on time.
There’s no suggestion of wrongdoing by Mr Thompson, Peterborough United or the Conservative Party.
Rules ban anyone who isn’t registered as a UK voter from giving money to political parties as an individual.
But thousands of pounds in cash can be donated through UK based companies without revealing the source of the funds.
Andrew Pakes, Labour's Parliamentary candidate in Peterborough said: “The Tories can’t help but get themselves into a mess over money. This latest donor scandal raises more questions than answers.
“Peterborough Tory Party needs a red card for dragging Peterborough United into party politics.
"The club is part of everyday life in the city and deserves better than being a Tory loophole for donations.”
Mr Neale said: “The club has become aware that a political donation was made on behalf of one of its Directors, who has promised to repay said donation and we therefore consider the matter closed.
“The club’s position is that it supports all major political parties representing its wonderful supporter base. We apologise if our internal administration error caused any supporter disappointment”.
A Conservative Party spokesperson said: “It is our understanding that the donation was authorised by a director and shareholder within the business.
“Donations to the Conservative party are properly and transparently declared to the Electoral Commission, openly published by them, and comply fully with the law.”
