Pete Hegseth has denied sexual misconduct allegations after being nominated as Donald Trump’s defence secretary.

Susie Wiles, Mr Trump’s incoming chief of staff, was briefed on Wednesday night about a claim that Mr Hegseth had behaved inappropriately with a woman in California seven years ago, Vanity Fair reported.

Ms Wiles then spoke to Mr Hegseth the following day about the alleged incident, which is said to have taken place in Monterey, California, seven years ago.

Mr Hegseth said that the allegations stemmed from a consensual encounter and characterised it as a “he said, she said” incident, according to the report.

‘Hegseth vigorously denies all accusations’

Monterey police department said in a statement that it had investigated an alleged sexual assault “involving” Mr Hegseth at a Hyatt Regency hotel in Monterey, California, on a night in October 2017.

The victim reported suffering bruises to the right thigh. No weapons or property were involved, according to the report.

“President Trump is nominating high-calibre and extremely qualified candidates to serve in his administration,” Steven Cheung, Mr Trump’s communications director, said in a statement.

“Mr Hegseth has vigorously denied any and all accusations, and no charges were filed.

“We look forward to his confirmation as United States Secretary of Defence so he can get started on day one to make America safe and great again.”

Timothy Parlatore, a lawyer acting for Mr Hegseth, said: “This allegation was already investigated by the Monterey police department and they found no evidence for it.”

One source suggested that Mr Hegseth, a former Fox News host, had not been properly investigated by the Trump team before the president-elect made his controversial pick.

However, a senior figure in the transition team told the magazine: “Hegseth was vetted, but this alleged incident didn’t come up.”

An ally of Mr Hegseth suggested that the allegation had come from Republican establishment figures attempting to sabotage his appointment as defence secretary.

The former army veteran was a surprise pick to lead the Pentagon, with critics raising concerns about his lack of experience leading large organisations or in defence policy.

The Trump campaign has been approached for comment.