The illicit sexual encounters are suspected to have continued over several years and involved large sums of money.
Borås municipality has subsequently opened an investigation in accordance with Lex Sarah, a law obliging staff in the care industry to report instances of mistreatment to social services.
The 85-year-old, who is a long-term client of the municipal home-help service, was known to the authorities for having shown a significant interest in sex. With this in mind, the municipality has deliberately avoided sending female caregivers alone to the man's home.
But it has come to light that the woman got to know the elderly man and that she is now suspected of having received several hundred thousand kronor (tens of thousands of US dollars), rumoured to be payment for sexual services rendered.
"If this is the case then it is very tragic occurrence for all those involved. And if it is shown to be mere rumour then that is also tragic," a representative for the local municipality told BT.
From July 1st the law governing Lex Sarah will be expanded from care for the elderly and disabled to cover all social services.
Furthermore municipalities will also be required to report all case of mistreatment to the National Board of Health and Welfare (Socialstyrelsen), replacing the previous requirement for only the most serious cases to be reported.