Toronto Mayor Rob Ford may have offered $5,000 (£2,900) and a car to buy a video allegedly showing him using crack cocaine, according to notes from police wiretaps.
Details of the alleged offer were included in a 450-page police document released by an Ontario Superior Court judge.
According to police notes of a recorded phone conversation involving two suspected gang members, Mr Ford was aware of the video's existence in March, and offered to buy it.
One alleged gang member is heard telling another that he rejected the offer for the tape and planned to meet the mayor and ask for "150," meaning $150,000.
In one recording on April 20, an alleged gang member is heard saying "Rob Ford was smoking his rocks today" and that he would post a picture on Instagram.
On Wednesday Mr Ford laughed off the claims and ignored questions as he left his office.
Mr Ford, who has become an international media sensation, acknowledged last month that he smoked crack in a "drunken stupor" about a year ago. He previously denied the existence of the video.
Mr Ford has refused to resign as mayor of Canada's largest city and financial capital, despite mounting pressure after a string of incidents that have embarrassed Canadians.
They include public drunkenness as well as appearing in another video that showed him threatening "murder" in an incoherent rant.
Toronto's city council has stripped him of most of his powers.
Mr Ford has said he has quit drinking and adopted a healthier lifestyle.
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