A suspicious financial transaction uncovered during a recent audit of Defence Housing Australia (DHA) is being examined by the Australian Federal Police (ADF), the ABC has learned.

Key points: Government launched privatisation study in 2014, prompting audit that exposed transaction

Government launched privatisation study in 2014, prompting audit that exposed transaction Many inside military still believe Finance Department wants to privatise DHA

Many inside military still believe Finance Department wants to privatise DHA Mathias Cormann continues to deny privatisation claims

On Sunday, the ABC revealed the Department of Finance had asked the AFP to investigate DHA, the Government agency which manages more than $10 billion worth of Defence Force housing.

The two major shareholders for DHA are the Finance Department and the Defence Department, but many inside the military are deeply suspicious the Finance Department wants to privatise the agency.

Finance Minister Mathias Cormann has again rejected the claim.

"We have no intention whatsoever to sell Defence Housing Australia," Senator Cormann said.

In 2014, the Government launched a scoping study into the possible privatisation of DHA in line with a recommendation from the National Commission of Audit, but the option was ruled out in the 2015 budget.

According to Senator Cormann, the study did however identify a series of issues which needed to be addressed.

"[It] recommended a thorough review of Defence Housing Australia's accounting, information technology and business reporting systems to improve the transparency of the cost of providing services," Senator Cormann said.

Consulting firm KordaMentha undertook the audit, which Senator Cormann said uncovered a suspicious transaction, prompting his department to contact the AFP.

"In the course of that audit some specific issues relating to one transaction raised concerns to the extent that Finance [Department], in its independent judgement, decided to refer the matter to the AFP for its assessment and any action as it considers appropriate," he said.

"It is entirely appropriate, indeed necessary, for Finance to take that course of action where in its judgement that is warranted.

"There is no reason whatsoever to link such a referral to any alleged plan to privatise DHA, which does not exist and has been ruled out by the Government consistently since May 2015.

"The matter is now appropriately one for the AFP to consider and action as it sees fit."

The AFP said the matter was still "under evaluation" and "it would not be appropriate to comment further".