The Attorney General believes the Manchester Evening News breached an injunction protecting the identities of James Bulger's killers and has written to the paper seeking an explanation.
Lord Goldsmith has decided that an article that appeared in the paper last Friday broke the terms of a High Court injunction barring the publication of details of the whereabouts of Robert Thompson and Jon Venables.
Once he receives the explanation and takes legal advice, the Attorney General will decide whether or not to go ahead with proceedings for contempt of court.
In a statement issued on Saturday, the Evening News said it "would never knowingly breach an injunction".
The paper has now been advised by the Attorney General not to comment on the story.
Any newspaper found to have breached the injunction could face an unlimited fine or the imprisonment of their editor under the Contempt of Court Act.
The first lifetime media injunction ever granted was imposed by the High Court in January to protect Thompson and Venables from revenge attacks.
On Friday, the parole board cleared the way for their release after eight years and four months in custody.
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