Dale's lawyers visited the mayor's office Thursday afternoon to serve libel notice, a necessary step in filing a defamation lawsuit.
Dale said Vision TV, the network that aired the interview, has also been served with the same notice.
"It had become clear to me that, if I had done nothing, the mayor would make his smears some sort of political talking point," Dale says in an editorial in the newspaper. "His comments to Black were no one-time slip; they seemed to be the first shots in a bewildering campaign against my good name."
Star editor Michael Cooke said the "pervert accusation" amounted to "vile slander."
The Star is financing Dale's legal proceedings. Cook said the reporter has the Star's "full and complete support."
Ford has been under intense media scrutiny for months, following reports that someone was shopping a video that showed him smoking crack cocaine.
For months, the mayor denied both the allegation and the video’s existence.
But in November, Ford admitted smoking crack cocaine after police revealed they had obtained a video of the mayor that was consistent with what the media had reported.
The mayor has also admitted to drinking to excess and used illegal drugs while in office.
The drug-related scandal involving the mayor has made headlines around the world and has spurred repeated calls for Ford to either take a leave of absence or resign.
Ford, 44, has served as the mayor of Toronto for three years. He has pledged to run for re-election next year.