The 19-year-old singer was allegedly recorded on surveillance video in a lapdancing club in Queensland, Australia, last November and the raunchy footage features him "spanking" the bare butts of the women and
"pulling off their panties with his teeth", RadarOnline.com reports.
A still image from the 12-minute "crystal clear" video - which is said to be being shopped for sale to various media outlets for a "fortune" - shows the 'Beauty and a Beat' hitmaker wearing a baseball cap backwards with the two topless women, and a security guard can be seen standing near by.
A source told the website the singer is "in compromising positions and romping with two strippers during which he spanks their bum and pulls off their panties with his teeth".
The news comes days after Justin and his friend Khalil Sharieff were pictured each licking the nipples of a topless stripper at a recent party.
A source told TMZ that the woman - who was described as "old enough to be [Justin's] mother" - was hired to "perform" for the teenage star and his friends at a bash at a Los Angeles recording studio.