News International chairman James Murdoch is facing renewed questions over evidence he gave to a British parliamentary scandal investigating the phone hacking scandal earlier this week.

Mr Murdoch had already been accused of misleading parliament over evidence he gave about a compensation payment to a victim of phone hacking.

Now a Labour MP has referred him to the Metropolitan Police over an answer he gave to this week's parliamentary inquiry into the scandal.

Mr Murdoch told MPs he was not aware of a 2008 email which suggested phone hacking at the News of the World was a tactic used by more than just one rogue reporter.

But the tabloid's former editor and its former head of legal affairs say they told Mr Murdoch about the email and MP Tom Watson, a member of the committee that grilled Mr Murdoch, has referred the answer to police.

UK prime minister David Cameron says the media boss has "questions to answer" and Mr Watson says it is the most significant development of the saga in two years.

Mr Watson says Mr Murdoch "failed to report a crime to the police" and also "bought the silence of Gordon Taylor", chief executive of the Professional Footballers' Association.

Mr Taylor received a reported 700,000 pounds ($1 million) after he brought a damages claim against the now defunct News of the World.

A Metropolitan Police spokesman confirmed Scotland Yard had received a letter from Mr Watson.

"It is being considered," the spokesman said.

Mr Murdoch has denied giving misleading testimony, saying: "I stand by my testimony to the select committee".

Meanwhile, another Labour MP, Chris Bryant, has called on News Corporation's non-executive directors to suspend Rupert and James Murdoch from their duties.

ABC/AFP