JOHANNESBURG (Reuters) - South Africa's President Jacob Zuma will challenge a report released this month by the anti-corruption watchdog that alleged influence-peddling in his government, his office said on Friday.

The president's office said in a statement that Zuma had received legal advice to challenge the report, which also prescribed that a judicial inquiry be set up to probe the allegations against him. Zuma denies any wrongdoing.

(Reporting by Mfuneko Toyana; Editing by James Macharia)