Peter Mandelson is being investigated and faces a £300 fine after being caught urinating against a wall in Notting Hill.
The former US Ambassador, who was sacked from his role over his links to the late paedophile Jeffrey Epstein, was seen relieving himself against a garden wall after a late-night visit to George Osborne's home last Wednesday.
Councillor Johnny Thalassites, Kensington and Chelsea council’s lead member for environment and planning, said: "We are aware of images appearing to show a prominent politician caught short on one of our streets and are investigating whether an offence has been committed.
"While we appreciate that nature can call at the most inconvenient moments, we are proud of our borough's clean streets and amazing spaces and it is unacceptable for anyone to treat them as a urinal."
The council on Tuesday confirmed that the maximum fine for the offence of public urination in the borough is £300, reduced to £150 if paid within 14 days.
Images of Lord Mandelson relieving himself were published hours after 20,000 documents from Epstein's estate were revealed.
Emails revealed that the sex offender had remained friends with the Labour peer until late 2016, eight years after pleading guilty to child sex offences.
Lord Mandelson arrived at former Tory chancellor Mr Osborne's £10million townhouse three hours earlier on Wednesday evening, carrying a bottle of Chilean wine.
Lord Mandelson, 72, said: “I can only offer my profuse apologies. I was stood up by two Uber drivers and kept waiting in the street for half an hour and was bursting. There is no disguising my embarrassment.”
The former minister was sacked by Sir Keir Starmer as the UK’s ambassador to the US in September after the extent of his friendship with Epstein was uncovered.
Emails disclosed then showed that Lord Mandelson was sending supportive messages to the paedophile up until 2010 – including after his conviction for soliciting a minor for prostitution.
When he was fired, the Government said the emails showed “the depth and extent of Peter Mandelson’s relationship with Jeffrey Epstein is materially different from that known at the time of his appointment”.
Epstein died in a New York jail cell in 2019 while awaiting trial on sex trafficking and conspiracy charges.
Lord Mandelson has previously said he “deeply regrets” his friendship with Epstein, adding: “I continue to feel utterly awful about my association with Epstein 20 years ago and the plight of his victims. “