The Secret Service did not deny that this former embassy employee was suspected to be a Russian spy, but they insisted that foreign service nationals employed by US embassies do not have access to national security information.
They established she was having regular and unauthorized meetings with members of the FSB, Russia's principle spy agency.
An intelligence source told the Guardian the woman was dismissed last summer after State finally revoked her security clearance.
According to U.S. officials, that was because she was being fed information in order for investigators to see for themselves that she was passing it along to Russian intelligence.
The woman had access to the Secret Service's intranet and email systems, the reports said, giving her a window into potentially sensitive data including the schedules of the U.S. president and vice president.
"We figure that all of them are talking to the FSB", the source said of any foreign nationals working for the embassy, but the suspect "was giving them way more information than she should have".
After an investigation, the RSO reported this breach to the Secret Service in January 2017.
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"She did not have access to highly classified information", the official said.
The newspaper said that the alleged spy could gain secret information, including graphics of US President Donald trump and Vice-President Mike Pence.
Instead the woman was sacked discretely months later, but it was overshadowed by the Kremlin's expulsion of more than 750 U.S. personnel following sanctions from Washington.
'This is of particular emphasis in Russian Federation.
The United States Secret Service Department of Homeland Security also denied later in the day allegations made in the report of the British daily.
Acknowledging that foreign nationals can clearly be influenced by foreign intelligence agencies at any time, the agency noted that this situation is specifically tailored to Russian Federation. As a result, the duties are limited to translation, interpretation, cultural guidance and administrative support.
File photo of the Russian Federal Security Services headquarters in Moscow, taken on March 30, 2010.
The state department later went on to concede the risk that foreign governments can pose to those employed by the US government.