The DfE has threatened to terminate the funding agreement of an academy sponsored by the MAT that was founded by the academies minister.
The minded to terminate letter to the Inspiration Trust about Great Yarmouth Primary Academy in Great Yarmouth, Norfolk, comes after the school was put in special measures.
The school was the first to be sponsored by Theodore Agnew, now academies minister Lord Agnew.
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Lord Agnew stepped down as chair of the Inspiration Trust after becoming a minister, and cut his last formal ties to the trust last month.
Inspiration Trust chief executive Dame Rachel de Souza has strongly criticised the inspectorate over the report.
In the letter, dated 13 March and published today, regional schools commissioner Sue Baldwin writes: "I must be satisfied that the Academy can achieve rapid and sustained improvement. If I am not satisfied that this can be achieved I will consider a Notice of Termination in accordance with Section 2A of the Academies Act 2010."
Inspiration Trust spokesman James Goffin said: "This is a technical response to Ofsted's judgement and was to be expected following the publication of the inspection report.
"We continue to pursue our complaint about the poor conduct of the inspection and the confused and inaccurate report through Ofsted's internal processes.
"We have already invited the regional school commissioner's team to visit and see the reality on the ground for themselves.
"We are confident they will recognise the positive progress being made for pupils at the school, building on our improved key stage 1 and 2 results in 2018."