The report was written by former Judge David Jones in his role as the special investigations monitor overseeing the Office of Police Integrity (OPI).
The report was tabled on Thursday in the Victorian parliament.
Fairfax newspapers said the report revealed the OPI was investigating allegations including "the theft of goods and controlled drugs from known sex workers, assaults of sex workers and criminal or improper associations with drug dealers, drug users and sex workers".
The allegations also included "the ownership and management of an unlicensed brothel" by police.
The police station involved in the allegations was not named but Fairfax said the small number of police under investigation have worked in the St Kilda area.
One officer has resigned and another has been transferred to a different region.
An 18-month OPI and Victoria Police investigation suggests a few officers may have had free sex with street prostitutes at a hotel and other Melbourne locations, one long-serving officer was part of plans to run a brothel with a criminal, and two officers - one still serving - had long-term sexual relationships with street prostitutes.
There are also claims a policeman raped a street prostitute with a baton and another travelled to Sydney and took illicit drugs with a transvestite.
The revelations have renewed calls for the establishment of safe houses for sex workers in St Kilda, to eliminate corrupt activity between street workers and police.
31 Oct 2008
This is NOTHING NEW. This has been well known for quite some time.
Someone MUST be uncomfortable to somebody else in order for this to come out.
In any event what consequences, if ANY will arise from this?
There are other examples of fraud being committed, and NOTHING is done.