Former captain Younis Khan sent a legal notice to British tabloid News of the World, which claimed in a report that he like several Pakistan cricketers had signed London-based bookies Mazhar and Azhar Majeed as his agents in the United Kingdom.
Reliable sources close to Younis said that the former Pakistan captain instructed his lawyer Ahmed Qayyum to issue the notice to the tabloid for publishing the report.
"Yes, the notice has been sent and in it Younis has demanded that the newspaper publish a denial and also pay damages of US$ 10,000 towards the flood relief fund for the millions of Pakistanis displaced by the floods," a source said.
"The brothers approached Pakistani players to sign them during the 2006 tour and Younis refused," the source added.
The source also claimed that Younis was one of the few Pakistan players, who had refused to sign the Majeed brothers as their agent in England.
Mazhar is at the centre of a new match-fixing scandal and was arrested for trying to defraud bookmakers. He was later released on bail.
Mazhar claimed that he had paid bribes to some Pakistan players, including captain Salman Butt, for spot fixing in the fourth Test against England at Lords.
Mazhar's claims have set off a major investigation by the ICC and the Scotland Yard into fixing allegations.
The Majeed brothers are believed to have formalised their relations with members of the Pakistan squad on the 2006 England tour though it remains unclear whether any official agreement was signed.
Over a number of years Azhar and Mazhar have handled various sponsorship and marketing contracts for the players in the UK.
Younis stepped down as captain of the Pakistan side last November after an ODI series loss to New Zealand, claiming that he no longer had control over his players.
He was called up for the ODI series in Australia where he played under Mohammad Yousuf's leadership.
Soon after the series he was punished on disciplinary count by a PCB inquiry committee which ruled that he would not be picked in the team for an indefinite period.
Younis appealed against the decision when it was referred back to the PCB by a tribunal. It has remained there, however, reportedly due to personal differences between PCB chairman Ijaz Butt and Younis.
Despite calls by a number of ex-players, Younis has not returned either to the Test or ODI side since the Australia series.