Trump's personal attorney, Michael Cohen, released a January 10 letter purportedly written by Stormy Daniels, a retired adult film star whose real name is Stephanie Clifford.
Jacob Weisberg, editor-in-chief of the Slate Group, told the New York Times Clifford told him about her relationship with Trump in several interviews in 2016.
The White House attacked the Journal'sreport calling it "old, recycled" news from rumors circling prior to the election. "This is now the second time you are raising outlandish allegations against my client".
Ms Clifford's attorney, Keith Davidson, also represents Karen McDougal, a one-time Playboy model who reportedly received $150,000 from the National Enquirer for the rights to her own story about an alleged 2006 sexual encounter with Mr Trump.
According to the Journal's report, Clifford reached a $130,000 deal a month before the 2016 election, which prevented her from going public.
Michael Cohen, Trump's personal attorney, said the President "vehemently denies" the encounter, but did not address the alleged payment in a statement to CNN. "Stormy said she met Donald Trump and then tells me about the golf tournament and how she's supposed to hang out with him later that night, and she invited me".
Two years later, she received a restraining order against Mr Mosny after he allegedly attacked her and attempted to steal her auto. "My friend wants to speak with you directly because she is in fear that Donald Trump will ruin her life more than he already has". Clifford has previously denied an alleged relationship with Trump.
Porn star Jessica Drake also claims that she had an encounter with Trump at the same golf event - but she says hers was not consensual.
"She came home and she wasn't happy with the way he folded the laundry so they had a fight", said Hines.
If published, the report would have come soon after the release of the "Access Hollywood" footage where Trump boasted about grabbing women by the genitals uninvited and pursuing married women. "She didn't respond to requests for comment", the Wall Street Journal reported.
A self-declared Republican, Clifford considered a bid for the US Senate in 2010, but ultimately declined to run.
Trump - who has faced sexual misconduct accusations from more than a dozen women during the presidential race - has denied any wrongdoing in the past.