Wendy Hatfield, a Kings Cross policewoman in the 1990s, alleges that the Nine Network and the production company Screentime defamed her in an episode broadcast on 9 May.

In the episode, "Constable Wendy" is shown having sex with the nightclub owner John Ibrahim while she is dressed in her police uniform.

Hatfield, who previously told the Wood Royal Commission that she never had a sexual relationship with Ibrahim, claims Underbelly defamed her by implying she had a sexual relationship with Ibrahim, whom she believed to be a criminal.

Ibrahim told the Commission that he had an "intimate" relationship with Hatfield, but did not divulge if that was sexual in nature.

Hatfield is also seeking special damages after she was not given a preview screening of episodes of the series before it went to air.

Screentime and the Nine Network deny it has identified Hatfield and additionally claim that any potentially defamatory imputations were based on fact.