Palin denies having had an affair with husband's business associate

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London, Sept.5 : The smear campaign against Republican vice-presidential nominee and Alaska Governor Sarah Palin is showing no signs of abating, with the American tabloid "National Enquirer" claiming that she committed adultery with a business associate of her husband, Todd.

An incensed Palin and the McCain campaign have now threatened to sue the tabloid on the issue.

"The smearing of the Palin family must end. The allegations contained on the cover of the National Enquirer insinuating that Governor Palin had an extramarital affair are categorically false. It is a vicious lie," The Telegraph quoted McCain senior adviser Steve Schmidt, as saying.

"The efforts of the media and tabloids to destroy this fine and accomplished public servant are a disgrace. The American people will reject it," he added.

The Enquirer article is based entirely on unnamed sources and the magazine often pays sources to speak to them.

The Enquirer was recently vindicated after it proved that former Democratic presidential candidate John Edwards had conducted an extra-marital affair with a filmmaker he had met in a bar in New York and later employed on his campaign.

The Enquirer responded: "The National Enquirer's coverage of a vicious war within Sarah Palin's extended family includes several newsworthy revelations, including the resulting incredible charge of an affair plus details of family strife when the Governor's daughter revealed her pregnancy."

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