Fremantle coach Ross Lyon is at the centre of an alleged harassment case involving a former employee of the club, Fairfax Media has reported.

Fremantle reportedly paid a “low five-figure sum” to the employee after Lyon “allegedly made inappropriate comments about the woman’s attire” at a Christmas function.

Reports of an issue at Fremantle first surfaced late in 2017 and Lyon – appointed as Fremantle’s head coach in 2011 – addressed them after a round four defeat to Greater Western Sydney.

“I’m certainly aware of that [issue] and I’m aware the club and the AFL have released a statement,” Lyon said.

“The whole club will reference that statement and no one’s in a position to comment any further.”

Fremantle and the woman involved reached a financial settlement in December, The Age reported.

AFL chief executive Gillon McLachlan spoke about the issue on Friday, when it was not known who the Fremantle figure involved was.

“Our integrity unit has looked at it and ruled out imposing any sanction,” McLachlan said.

“Every aspect of the case was looked at … almost immediately when the complaint came to life.”

McLachlan added the AFL was “entirely comfortable with what’s happened at Fremantle”.

Lyon, who played for Fitzroy and the Brisbane Bears, coached St Kilda before moving to Fremantle.

He has also been involved on Australia’s coaching panel for International Rules fixtures.