Mona Juul resigned as ambassador to Jordan and Iraq on Sunday, days after she was suspended following Norwegian media reports that each of her children would receive $5m (£3.6m) in a will allegedly signed by Epstein days before he died.
Emails released in the so-called Epstein files also appear to show that Juul's husband, Terje Rød-Larsen, had dinner with Epstein in Paris in June 2019, weeks before Epstein's arrest in the US on sex trafficking charges.
Juul's lawyer has said she "does not recognise the accusations made against her" and Rød-Larsen's lawyer said he is confident the investigation will clarify "there is no basis for criminal liability".
Appearing in the files is not an indication of wrongdoing.
Norway's foreign ministry has said Juul's contact with Epstein revealed a "serious lapse in judgement".
An "aggravated corruption" inquiry has been launched by the Norwegian economic crime unit Økokrim, police announced on Monday.
"Økokrim will, among other things, investigate whether benefits were received in connection with her position," police said in a statement, referring to Juul.
A property in Oslo has been searched in connection with the investigation.
Juul and Rød-Larsen were part of a small group of diplomats that negotiated the 1993-1995 Oslo Accords, which at the time were seen as a breakthrough in the conflict between Israel and the Palestinians.
Norwegian media reports Rød-Larsen had extensive communication with Epstein and arranged to meet him with Juul more than once.
The wider Epstein documents, released by the US Department of Justice last month, contain millions of private emails, images and FBI reports into the late sex offender - who died in 2019 while awaiting trial for sex trafficking.
Juul is the latest prominent public figure from the Nordic country to be drawn into the widening scandal surrounding the contents of the files, including Crown Princess Mette-Marit, former Prime Minister Thorbjørn Jagland, and chief executive of the World Economic Forum (WEF), Borge Brende.
Mette-Marit gave a "profound apology" to Norwegians for her friendship with Epstein, after it emerged they had exchanged messages for three years.
Jagland, who is also former head of the Norwegian Nobel Committee, is being investigated over his alleged links to Epstein. His lawyer said they would fully co-operate with the police probe.
The WEF ordered an independent review into Brende – who also served as the Norwegian foreign minister - over his interactions with the paedophile.
Brende has acknowledged dining with Epstein three times in 2018 and 2019 and communicating with him by email and text. He said he welcomes the WEF's decision to launch a review.
Correction 9 February: An earlier version of this article carried a picture of Danish politician Mona Juul, who is not the subject of this story.
Watch: Ghislaine Maxwell repeatedly invokes right to silence during depositionCabinet ministers rally round PM as Sarwar urges him to quitMore from the BBC3 days agoNorway's crown princess apologises after pressure over Epstein friendshipMette-Marit says she is sorry to Norwegians for not realising what kind of person the late sex offender was.
Police say Thorbjørn Jagland is suspected of "aggravated corruption", requesting for his immunity to be revoked.
Son of Norway's Crown Princess gives evidence as rape trial continuesThe BBC's Paul Kirby reports from outside the court in Oslo, where Marius Borg Høiby denies rape and many other serious charges.
Marius Borg Høiby gives evidence after the first woman he is alleged to have raped told the court she believed she had been drugged.
The first alleged victim gives further evidence in Marius Borg Høiby's trial for rape and other alleged offences.
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