Craig Levein has opened legal proceedings against the Scottish Football Association after he was left his job as Scotland boss last month.
Levein has now instructed his lawyers to serve a writ on the SFA, who had offered to honour the remainder of his contract in full.
He resigned as Scotland boss after a poor start to their World Cup qualifying campaign which has left them bottom of Group A with just two points from four games.
A statement from the SFA read: "Regrettably, the Scottish FA has received notification from lawyers representing Craig Levein that their client has served a writ on the Association.
"This notification has been received despite the Scottish FA's offer to honour Craig's contract in full, an offer that was made immediately upon the Board's decision to relieve Craig of his duties on November 5, 2012.
"The Scottish FA has since received notification that Craig has chosen to resign, thereby foregoing the offer made to honour his contract in full. In the notification received, failure to make a proposal in lieu of compensation has been cited.
"It is the view of the Scottish FA that no such offer is required given Craig's decision to resign, especially since an offer of mediation was rejected by his legal representatives. We will make no further comment at this time.''
Information from the Press Association was used in this report