West Ham have told Alan Curbishley they intend to fight his claim for compensation following his resignation in September, BBC Sport understands.
Curbishley has written to the Hammers informing them he intends to pursue a claim for constructive dismissal.
The club has responded by telling Curbishley he waived any right to compensation when he resigned.
Curbishley argues the club broke a clause in his contract guaranteeing him a say in all transfer dealings.
The former Charlton boss says this was not the case during his final months at Upton Park, when he argues the club sold defenders Anton Ferdinand and George McCartney against his wishes.
This prompted the 50-year-old to quit his role with Italian Gianfranco Zola replacing him at Upton Park.
We are aware of Alan Curbishley's position and it is now a matter for the lawyers for the two parties
West Ham official
Curbishley joined West Ham as manager in 2006 having previously spent 15 years as boss at Charlton.
After taking over at Upton Park in December 2006 he helped the Hammers beat the drop despite West Ham looking certainties for relegation.
His second season saw the Hammers finish 10th in the Premier League but he resigned in September with the club fifth in the table.
Hammers officials are currently waiting to hear back from Curbishley.
"We are aware of Alan Curbishley's position and it is now a matter for the lawyers for the two parties," a West Ham official told BBC Sport.
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