Covid-19 is thought to have spread to Redwood House at Broughty Ferry last week after two staff and one resident tested positive.
Management would not confirm the exact number of deaths in the 30-bed residence, but the Care Inspection Watchdog confirmed that it knew of at least two.
There are currently no coronavirus tests planned for residents of nursing homes in Scotland, but the deaths are linked to the epidemic.
It occurs after 16 residents died of a suspected coronavirus in a nursing home in Glasgow for seven days.
A spokesperson for the Nursing Inspectorate said, “We are aware of the tragic deaths of residents of this nursing home following suspected cases of Covid-19.
“Our thoughts are with those close to those affected as well as the staff and the wider community of the home.
“We have been informed of the circumstances and we are in contact with the care service and the local health and social protection partnership during this difficult period.
“The whole welfare sector in Scotland is working under very difficult circumstances to care for people during the pandemic and the Care Inspectorate is doing everything it can to support them.”
The nursing home, along with many others, told family members that it may not be in the best interests of a resident to go to the hospital if they suspected a case of Covid-19.
Visits to the premises of Seafield Road, managed by the Kennedy Care Group, are currently prohibited, except in exceptional circumstances such as end of life.
In this case, a family member or other designated person would be allowed to visit while respecting strict rules, including wearing a plastic apron, gloves and a mask.
Local Councilor Craig Duncan said, “It is painful to hear of any deaths and my thoughts are with the families.
“It is worrying that without testing, we simply do not know for sure whether or not these residents had a coronavirus.
“It means we don’t know the magnitude of the problem.”
Over the weekend, it was revealed that 16 residents of Burlington Court in east Glasgow died from an epidemic.
The 90-bed facility supports the elderly and those with epilepsy, Huntington’s disease and Parkinson’s.
All of the deaths are linked to Covid-19, but not all of them have been tested for the virus.
Two staff members also received treatment for the disease.