News Limited has denied allegations being investigated by the Australian Federal Police that it tried to influence a senator's vote on proposed media laws by offering him favourable coverage.

Bill O'Chee, a Queensland Nationals senator from 1990 to 1999, told the AFP a News Limited executive said he would be "taken care of" if he crossed the floor on legislation to open the way for digital television in Australia, Fairfax Media reported.

He said the executive offered him a special relationship, involving editorial support on the media laws and other issues.

Mr O'Chee, who had previously crossed the floor on Coalition legislation, said in his nine-page statement to the AFP that he received an invitation to lunch with a senior News Limited executive in mid-1998.

Soon after the Queensland state election they met at a Brisbane restaurant where Lachlan Murdoch, the son of News Limited chairman Rupert Murdoch, was having lunch at another table with Chris Mitchell, then editor of The Courier Mail newspaper.

Untrue

In a statement on Wednesday, News Limited chairman and chief executive John Hartigan said the allegations were untrue.

"The executive referred to in today's report, Malcolm Colless, has confirmed that no improper conversation took place during the 1998 lunch with former Nationals senator Mr O'Chee," he said.

"The two other guests at the lunch with Mr Colless and Mr O'Chee have said they did not hear any improper conversations."

Mr Hartigan said neither News Limited nor Mr Colless had been contacted by the AFP.

Mr O'Chee revealed the alleged incident last month when he was chatting with a sitting MP at an Australian airport about the News Of The World phone hacking scandal.

The AFP was told about the conversation and the matter was sent this month to the special references unit, which deals with politically sensitive issues.

Pilloried

Mr O'Chee, who was in his early 30s when he lost his Senate seat, had been pilloried about his large parliamentary superannuation and his divorce in the Murdoch press.

In 1998 legislation was proposed to ban new TV stations for 10 years to protect existing operators and give free-to-air broadcasters up to six new channels under a new digital television regime.

News Limited was opposed to the move.

The News Limited executive declined to comment on the allegations to Fairfax on Wednesday.

Lachlan Murdoch said through a spokesman he could not recall the lunch, while Mitchell said he recalled a lunch with Mr Murdoch during which they encountered Mr O'Chee but he could not recall the News executive being present.

AAP