ST. PAUL, Minn. (AP) – John McCain’s campaign is denying a tabloid report that vice president candidate Sarah Palin had an extramarital affair. “It’s a vicious lie,” spokesman Steve Schmidt said.

The campaign is considering legal action, the senior adviser added.

The National Enquirer wrote in its edition dated Sept. 15 that Palin had an affair with a business associate of her husband, Todd Palin. He discovered the infidelity and dissolved the business, the article said. It attributed the allegation only to “an enemy” of the Alaska governor.

“The smearing of the Palin family must end,” Schmidt said in a statement.

released Wednesday. “The allegations contained on the cover of the National Enquirer insinuating that Gov. Palin had an extramarital affair are categorically false.”

AP-ES-09-04-08 1751EDT