German news weekly Der Spiegel said a 6.7m euro (£4.9m) fund was set up using private money from the late former Adidas boss, Robert Louis-Dreyfus.
FIFA said in a statement the “serious allegations” would be investigated while the DFB plans legal action.
Germany won the bid by 12 votes to 11, narrowly ahead of South Africa.
“The DFB categorically rejects the baseless allegations by the publication that the association had paid illicit funds in relation to the 2006 World Cup,” the BBC quoted the German FA as saying in a statement.
The association also rejects the completely unsubstantiated conclusions that these funds were used to buy votes in exchange for the World Cup.”
FIFA said in a statement: “These are very serious allegations that will be reviewed as part of the independent internal investigation currently being conducted by FIFA under the direction of its legal director with the assistance of outside counsel.”
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