The paper claims that he was also critical of his predecessor Roy Hodgson
The Telegraph's investigations team is claiming that England manger Sam Allardyce "used his position" to negotiate a six-figure deal.
In an exclusive, the paper alleges that the former Premier League boss "offered advice to businessmen on 'getting around' FA rules on player transfers".
They say that it was part of a 10-month investigation.
The Telegraph has published footage of a meeting with businessmen, who "unbeknownst" to Allardyce according to the newspaper, were in fact undercover reporters.
The publication states that, over the course of two meetings with the England manager, he told the undercover reporters that it was "not a problem" to bypass FA rules on player transfers that he deemed to be "ridiculous".
The footage appears to show him telling the reporters it was possible to get around Football Association rules - enforced since 2008 - that stop third parties "owning" football players' economic rights, a practice which was also banned by world governing body FIFA in May 2015.
The newspaper claims a deal was struck with the England manager worth £400,000.
He succeeded Roy Hodgson as England manager after their national team's failure at Euro 2016 and has taken charge of one match - a World Cup qualifier against Slovakia which finished 1-0 after a late goal by Adam Lallana.
The Telegraph claim that he was critical of Hodgson and that the FA has requested to see "the full facts in relation to this matter".
Allardyce said Hodgson "hasn't the personality" to do public speaking and would "send them all to sleep"— The Telegraph (@Telegraph) September 26, 2016
Read the full Telegraph report here.