Eriksson has had two successful spells at Benfica

Eriksson managed the Portuguese club twice and claims he is owed �300,000 in taxes relating to his second spell in charge between 1989 and 1992.

But the club have released a statement denying Eriksson's claim.

"There are no legal grounds for the claims of its former coach," read the statement.

"It will be up to the court to settle this conflict, which in no way reduces the respect and consideration which are owed him as a man and professional.

"Benfica is, and always has been, a club with a good memory and it does not forget the competent and efficient way that Sven-Goran Eriksson fulfilled his duties and the sporting feats he achieved."

But Eriksson earlier outlined his intention to recoup the money he claims he is owed.

"The fact is that they still owe me money," said Eriksson. "For years, I have tried to talk to them.

"I got a new lawyer involved in Portugal a couple of years ago to try and sort it out."

He added: "I was surprised to see that it could now be going to court.

"I haven't talked to the lawyer yet so I don't know exactly what is happening.

"But maybe it is time after 12 years to do something."

Eriksson led Benfica to the league and cup double in 1983, just one year after he took over the coaching duties at the club for the first time in 1982.

The club narrowly missed out on a treble that year as the team were beaten in the Uefa Cup final by Anderlecht.

Another Portuguese championship followed before the Swede moved in 1984 to manage AS Roma and then Fiorentina.

He returned to Benfica in 1989 where he led the club to a third Portuguese title in 1991. Eriksson left the club one year later, once again for Italy.