Intel has acknowledged reports of counterfeit Core i7 processors being sold at US retail by stating that it is "working to identify" the problem.

Over the course of the past few days, reports have surfaced at a number of technology websites claiming that readers had received the counterfeit product - an Intel Core i7 920 processor - from US retailer Newegg.

The high-end part, priced at $289, is said to have been delivered to Newegg customers, only to be identified as a counterfeit product - consisting of an imitation box, a fake chip, a placeholder for the heatsink/fan and a manual consisting of blank pages.

Newegg has responded by issuing a statement to HardOCP - who originally broke the story on Friday and later claimed 300 counterfeit processors had been delivered to the US retailer via D&H Distribution - by stating that "one of our long term partners mistakenly shipped a small number of demo boxes instead of functional unit".

The retailer is now believed to have contacted affected customers, issuing replacements where appropriate.

Although it remains unclear exactly how the counterfeit products made their way into retail, Intel has acknowledged that the problem exists by issuing the following brief statement:

"Intel has been made aware of the potential for counterfeit i7-920 packages in the marketplace and is working to identify how many and/or where they are being sold. The examples we have seen are not Intel products but are counterfeits."

"Buyers should contact their place of purchase for a replacement and/or should contact their local law enforcement agency if the place of purchase refuses to help."

A video showing one of the counterfeit CPUs has appeared on YouTube and can be viewed below.