World Wrestling Entertainment (WWE) boss Vince McMahon has quit in the wake of sex-trafficking allegations from a former employee.

Janel Grant alleges Mr McMahon and another ex-executive, John Laurinaitis, sexually assaulted and trafficked her to entice wrestling talent.

Mr McMahon, 78, said in a statement that he had made the decision to resign as executive chairman of TKO, the parent company of WWE.

He has denied the allegations.

“I stand by my prior statement that Ms Grant’s lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth,” Mr McMahon said in a statement on Friday.

He added: “Out of respect for the WWE Universe, the extraordinary TKO business and its board members and shareholders, partners and constituents, and all of the employees and Superstars who helped make WWE into the global leader it is today, I have decided to resign from my executive chairmanship and the TKO board of directors, effective immediately.”

In a staff memo obtained by ESPN, WWE president Nick Khan shared that “Vince McMahon has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors”.