Parkinson has been in charge at Layer Road since 2003

City chairman Adam Pearson has told BBC Radio Humberside that Colchester have turned down a bid of �250,000.

Pearson said: "It's a very generous offer, five times the value of the unexpired part of Phil's contract.

"We could probably get to �300,000 but unfortunately the Colchester chairman has asked for half a million pounds plus costs."

Pearson added: "It's taken it into the realms of the quite ridiculous so it appears we'll now have to go to court on Monday and see if we can get the injunction lifted."

Colchester were granted a temporary High Court injunction last Friday which prevents manager Parkinson from leaving the club.

Parkinson, 38, resigned on 14 June, but the club rejected his resignation.

The Tigers have been without a manager since Peter Taylor joined Crystal Palace on 13 June.

Parkinson is still under contract at Layer Road for a further year, and was denied permission to talk to Charlton, Ipswich and Derby after guiding the U's to the Championship.