The Great John Street Hotel is the place to be seen if you are anyone who is anyone in Manchester. It styles itself as an “eclectic town house hotel”, boasts a roof terrace with south-facing views over the Coronation Street set and does not mind it being rumoured that Pete Doherty and Mike Tyson shared a drink in the bar.

There was no other choice of venue for the city’s wealthiest Christmas party – Monday night’s gathering of the Manchester United squad.

The footballers booked the hotel for their exclusive use, hired security guards, ordered the WAGs – their wives and girlfriends – to stay away and partied through the night with 100 invited models and dancers. But the mood soured at 4.15am when a young woman, clearly in distress, dialled 999 and reported that she had been raped in the building. It brought a sudden halt to the party, described by one observer as a “drinking, lap-dancing and gambling marathon”.

Last night a 19-year-old man was under arrest on suspicion of rape after voluntarily surrendering himself to police custody to answer questions.

Officers from Greater Manchester Police were swiftly sent to the hotel and began an investigation that will embroil the world’s biggest football club in scandal.

Sir Alex Ferguson, the club’s disciplinarian manager, is said to have given his reluctant blessing to the party, which was organised by the England international Rio Ferdinand. The player is reported to have boasted of a whipround in which 25 players contributed £4,000 each.

Police spent much of the day inside the £395-a-night hotel in the Castlefield area, which remained closed. Police refused to say whether any of the club’s players had been interviewed but insisted that inquiries were continuing. The 26-year-old complainant was taken to the specialist sexual assault referral centre at St Mary’s Hospital, where she was examined by medical staff trained in counselling victims and preserving evidence that might be used in a criminal case.

Late yesterday afternoon she gave an initial statement to police before being allowed to go home and rest. It is understood that she will be questioned in detail by specialist detectives today. Police are known to have made informal contact with the club over what has been described as a “very serious investigation”.

The police will be aware of Home Office research which shows that the Christmas party season results in a peak of rape allegations and that as many as 86 per cent of cases fail before reaching trial. United made no comment on the incident last night, with officials saying that it was a “police matter”.

But Sir Alex is certain to be alarmed by the allegation. The manager is famous for keeping his players on a tight leash and prides himself on having purged the club of its “drinking culture” in the late 1980s and early 1990s with the help of a network of informers who would keep an eye on players.

Reports earlier this month in advance of the planned party quoted a source inside the club as saying: “The lads are employing someone to hand-pick females to attend. There are strict instructions that only the best-looking girls in Manchester are to be invited.

“Guests will not be permitted to take mobile phones into the party venue. A team of at least eight security men have been employed to ensure that the rule is adhered to and that the night runs smoothly and without any unwanted guests.”

The same Old Trafford source added: “The lads are so high-profile they need to enjoy themselves in relatively private surroundings.”

“They had such a good time at last year’s party they decided on something similar this year. The day chosen gives them a week to get ready for their next game.”

The players’ party – attended by many of the club’s stars, including Ferdinand, Wayne Rooney, Ryan Giggs, Michael Carrick, Gary Neville and Wes Brown – began with lunch at the Linen Restaurant.

The players were reportedly entertained by burlesque dancers at their tables as they ran through the £19.50 Christmas menu of home-cured salmon, roast turkey with apricot and pistachio stuffing and baked white cheesecake. Later, members of the party were overheard singing football songs at the nearby Old Grapes pub, off Deansgate, owned by the Coronation Street actress Liz Dawn.

They made their way to the hotel from the pub but events there occurred behind strictly closed doors. Guests who were invited were forbidden from bringing cameras or camera-phones.

Some of the descriptions emerging yesterday from the party will have enraged Sir Alex and United’s American owners.

One guest told a news agency: “A lot of the players were really letting their hair down and really enjoying themselves in a big way. Lots of drink was flowing and there were a lot of girls simply trying to bag a footballer for the night. It was all very sleazy.”

Another guest said: “Rooney and Rio spent most of the night on the dance floor – but Ryan Giggs stole the show when he did an Elvis Presley impersonation.”

A police spokeswoman confirmed that the hotel was at the centre of its investigation.

He said: “Police are currently investigating a report of rape at a hotel in Manchester city centre. At about 4.15am on Tuesday December 18, 2007, police were called to the hotel on Great John Street to a report that a 26-year-old woman had been raped. Inquiries are continuing.”

A spokesman for the hotel said last night: “We did have an event on Monday night. We are helping the police with an investigation. We are currently closed.”