Parramatta have denied they have broken the salary cap, following a media report claiming the club had provided below-market rental properties to their players.

A report in The Australian stated that a former employee of Parramatta contacted NSW Gaming and Racing Minister Paul Toole about the allegations.

Under salary cap regulations if a club provides accommodation to players it must be recorded at market value.

On Tuesday, Administrator Max Donnelly denied the club had violated the salary cap.

"The Club categorically denies that there have been any salary cap issues regarding players and property post the 2016 season," Donnelly said in a statement released by Parramatta.

"The Club has been open and transparent with the NRL on all Salary Cap matters and no specific issues have been raised by them since I was appointed Administrator in 2016."

The Australian said there was no suggestion Parramatta players had done anything wrong.

In 2016 Parramatta were docked 12 competition points and fined $1 million for breaches of the salary cap dating back to 2013.

Donnelly released an open letter to club members on Tuesday afternoon reinforcing the Eels' insistence that they have done nothing wrong.

"Today we have had ongoing dialogue with the NRL Integrity Unit and Salary Cap auditors and our discussions will continue. I am confident that there are no issues with our salary cap compliance."