The footage allegedly shows Hatton taking out a wrap of the drug he has hidden in his shoe and snorting it with a rolled-up bank note, Sky News reported.
The former world champion at both light-welterweight and welterweight was knocked out in his last fight over a year ago but has yet to officially hang up his gloves.
His spokesman, Max Clifford, said: “I have spoken to Ricky just half an hour ago, he is very upset and very subdued, very flat.
“For the last few months friends and family have tried to warn him and they are hoping this situation will bring him to his senses,” said Clifford, who has known Hatton for a number of years.
The News of the World said the video was filmed over several hours while Hatton was on a night out with Irish national senior women’s boxing champion Emma Bowe.
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