McGrath averaged 61 in the Championship for Yorkshire in 2006

The club said last week they were still hopeful of persuading McGrath to honour the two years left on his contract.

His agents issued a statement which insisted: "McGrath will not be playing for Yorkshire during the 2007 season. His contract has come to an end."

But Tykes chief executive Stewart Regan said: "The club disagrees with this, we regard McGrath as under contract."

McGrath's advisors are adamant that the experienced Bradford-born batsman, who made his Yorkshire debut in 1995 and captained the side in 2003, can now look for another club.

"He is entitled to speak to other counties regarding new employment for next season - and this is what he intends to do," said solicitor Mike Townley.

But Regan was equally determined this was not the case and added: "He is not able to simply terminate his contract and walk away. We have notified other clubs of this by letter.

"Discussions with other clubs can only be undertaken if the player's contract has ended, and if the appropriate notice has been given to Yorkshire. Neither of these conditions have, in our view, been met.

"Anthony's ECB registration remains with Yorkshire."

Regan has sent a circular letter warning any club tempted to open discussions with McGrath that they risk contravening England and Wales Cricket Board regulations.

McGrath was the club's second highest Championship run-scorer in 2006 behind Australian Darren Lehmann.

The 31-year-old, who played four Tests and 14 one-day internationals for England from 2003-4, struck four centuries and nine fifties in a haul of 1,293 runs last term.

Despite his success with the bat last season, it is thought he grew disenchanted with an uncertain position behind the scenes over the winter, culminating in the departure of Director of Cricket David Byas after Chris Adams effectively replaced him then decided to stay with Sussex.

Townley, re-iterated: "It has been made 100% clear to Yorkshire through their solicitors that McGrath's employment contract has been brought to an end and therefore he will not be playing for them in future.

"I therefore couldn't understand why the club said that they are still hopeful that he will be playing for Yorkshire next season."