The Western Mail (p8) reports that Mr Law made his comments as he replied to a report by Welsh MPs on Denbighshire CC's funding legacy, which it inherited from Rhuddlan.
In its report published last July, the Welsh affairs select committee warned that problems experienced by Denbighshire in paying back the EU funds found to have been mis-spent could have implications for the£1.2bn worth of EU aid in line for Wales.
In a letter to committee chairman Martyn Jones, Mr Law said the points raised in the report would be 'fully considered'. Also making their replies to the report yesterday were the Audit Commission and Paul Murphy, the Welsh secretary.
He said that while there was no provision against this happening in the future, his civil servants would ensure that any councils considering a move would be made aware of the implications.