French authorities have conducted a search the Paris flat of IMF head Christine Lagarde.

The search, carried out today, was conducted as part of an investigation into her handling of a 2008 compensation payment to a businessman supporter of former-president Nicolas Sarkozy, her lawyer said.

Police are investigating claims that Ms Lagarde, when finance minister under Sarkozy, acted illegally in approving the €285 million arbitration payout to Bernard Tapie. She denies any wrongdoing.

"This search will help uncover the truth, which will contribute to exonerating my client from any criminal wrongdoing," Ms Lagarde's lawyer, Yves Repiquet, told Reuters.

Reuters