Sarkozy 'campaign donation' probe opened

Prosecutors have launched an investigation into claims of illegal campaign funding for French President Nicolas Sarkozy, officials say.

The move follows allegations by a former accountant for France's richest woman, Liliane Bettencourt, reports BBC News.

The accountant reportedly told police she was involved in channelling 150,000 euros to Sarkozy's presidential campaign in 2007.

Sarkozy dismissed claims surrounding the case as a "smear."

The money was to be handed over to Eric Woerth, who ran Sarkozy's campaign, according to Bettencourt's former accountant, Claire Thibout.

Her allegations were reported by the French website Mediapart after she made a statement to police on Monday.

Woerth, who has denied the allegations, is currently minister for labour in Sarkozy's government.

He has rejected opposition calls for his resignation.