Malky Mackay is reportedly out of the running to take charge of Crystal Palace after the English Football Association opened an investigation into the conduct of the Scot during his time at Cardiff City.
Cardiff have sent a dossier to the Football Association detailing a number of issues related to Mackay and former head of recruitment Iain Moody's time at the club.
The Daily Mail has reported that the document contains allegations of racist, sexist and homophobic text messages and Mackay now looks to be out of the running to succeed Tony Pulis at Crystal Palace.
Press Association Sport understands the dossier was filed over a week ago and was not deliberately timed to have any effect on Mackay's candidacy for the Selhurst Park vacancy.
FA sources confirmed receipt of the dossier.
Moody resigned as Crystal Palace sporting director on Thursday morning.
"In light of the events, Iain Moody has tendered his resignation and it has been accepted with immediate effect," a Crystal Palace statement said.
Moody had left his role as head of recruitment at the Welsh club at the end of last year after being suspended by Malaysian owner Vincent Tan, with Mackay sacked in the final days of 2013 after a public disagreement over transfer spending.
Moody joined Palace shortly after with Tony Pulis then taking over as manager of the South London club and leading them to an 11th place finish in the Premier League last term, while Cardiff were relegated.
But Pulis, who was named Premier League manager-of-the-season after his work steering Palace away from relegation, rocked the club by standing down as boss two days before last week's opening fixture against Arsenal.
Former Scotland defender Mackay had been expected to sign a three-year contract to take charge of Palace and reunite with Moody this week ahead of Saturday's London derby at home to West Ham United.
British media also reported that former England manager Glenn Hoddle, who had just taken an assistant coach role at London rivals Queens Park Rangers, had also turned down the job after an approach from Palace co-chairman Steve Parish on Wednesday.
British media speculated that Tim Sherwood, who took charge of Tottenham Hotspur for six months last season, had become favourite to replace Pulis but that the deal would not be concluded this week.
That would mean Keith Millen, who oversaw the opening 2-1 defeat by Arsenal, would continue in temporary charge of first team affairs.