The World Anti-Doping Agency (WADA) are to look into claims UKAD permitted British Cycling to undertake private testing of riders when one returned a test in 2010 containing a low level of nandrolone.
A low level of nandrolone can be due to a health issue or a contaminated supplement.
WADA's investigation is likely to examine whether either of these explanations were established as the cause, and what further action may have been taken by UKAD.
The inquiry will focus on why British Cycling conducted its own private testing of riders after the positive test.
WADA's code appears to compel UKAD -- not a governing body such as British Cycling -- to undertake such an investigation.
"We have asked our independent Intelligence and Investigations Department to look into this matter further and to contact UKAD to seek further information," the spokesman told the Mail on Sunday, who broke the story.
"Any allegation that an NGB (National Governing Body) may be testing their athletes in private, in a non-accredited lab, for the purposes of screening for a prohibited substance should be investigated thoroughly."
The Mail on Sunday claims UKAD's then head of legal, Graham Arthur, informed the senior management team of British Cycling of the abnormal finding.
The team at the time comprised of performance director Dave Brailsford, head of medicine Steve Peters, now shamed team doctor Richard Freeman and head coach Shane Sutton.
The Mail contacted the riders who were subsequently tested by the management team but none wished to be quoted on the record.
UKAD for their part issued a statement saying they were looking into the claims.
"We are working with the World Anti-Doping Agency (WADA) to investigate claims relating to private testing carried out by British Cycling in 2011," said a UKAD spokesman.
“UKAD is examining archives to confirm decisions that were taken in 2011 followed due process set by WADA."
Cyclists went on to give home fans a memorable London Olympics winning 12 medals, eight of them gold.
However, headlines of late have been damaging to the sport.
Freeman was permanently struck off the medical register earlier this month after being found guilty of ordering the banned product testosterone.
He was struck off after a Medical Practitioners Tribunal found he had ordered Testogel "knowing or believing" it was to be given to an unnamed rider for doping purposes in 2011.
There has been frenzied speculation about who the drug was intended for and who else might have known about it.
Former Tour de France champion Bradley Wiggins has called for a fresh probe into the scandal, which is a major blow to the reputation of one of Britain's flagship Olympic sports.