News Corp reported on Thursday that the Bombers had been paying Hird since he was banned from coaching on August 27 over the club's 2011 and 2012 supplements program.
"James is being paid a salary as pursuant to his contract," a source is reported as saying.
"A third party cannot interfere with those contractual agreements."
Read AFL letter to the clubs
The League had no comment to make on the suggestions while Essendon referred to its statement released on Wednesday.
"In relation to media inquiries regarding James Hird’s pay, Essendon Football Club will not be commenting on issues covered by confidentiality agreements," the club said in a statement on Wednesday.
Hird was given a 12-month ban from coaching as part of the sanctions for the club's supplements scandal that saw Essendon banned from the 2013 finals, stripped of draft picks and fined $2 million.
