Australia's domestic spy agency is investigating whether China tried to install an agent in federal Parliament in what Prime Minister Scott Morrison on Monday called "deeply disturbing" allegations.

The Australian Security Intelligence Organization (ASIO) said it had launched an investigation before the alleged plot was reported by Australia's "60 Minutes" program and affiliated newspapers Sunday.

The reports said a suspected Chinese espionage ring had offered "a seven figure sum" to pay for a Melbourne luxury car dealer, Bo "Nick" Zhao, to run for a seat in Australia's federal Parliament.