Labour has suspended Ivan Lewis, a former Foreign Office minister, following a complaint about his conduct.
The 50-year-old Bury South MP is under investigation by party officials because of the allegation.
A spokeswoman said: "The Labour Party takes all allegations of sexual harassment extremely seriously. Ivan Lewis is currently suspended from the Labour Party pending an investigation."
Earlier this month, BuzzFeed News reported that a woman had alleged that Mr Lewis had touched her leg and invited her to his house when she was 19 at a Labour Party event in 2010.
A statement issued through his lawyers at the time said Mr Lewis, a former Shadow Northern Ireland and Culture Secretary under Ed Miliband's leadership, had "never made non-consensual sexual comments or sexual advances to women".
He added: "However, I understand that a few women have claimed that my behaviour made them feel uncomfortable.
"I have on occasion asked women I work with out for drinks or dinner, or developed strong feelings for them, and I am genuinely sorry if this was unwelcome or inappropriate in the circumstances and caused anyone to feel awkward."
Mr Lewis, who served as a minister in the governments of Tony Blair and Gordon Brown, is one a number of Labour and Tory MPs to be investigated after allegations of inappropriate behaviour.
A swirl of Westminster sleaze claims saw Prime Minister Theresa May hold a summit with other party leaders to discuss new anti-harassment procedures across Parliament.
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