Sydney FC is suing former striker Dwight Yorke and refusing to pay out outstanding money owed to his management.
The Daily Telegraph reported that the club was seeking approximately $450,000 from the Trinidad and Tobago international because he breached holiday conditions in his contract when he spent several months with his national team to prepare for the 2006 World Cup.
The newspaper also said Sydney FC had only paid $150,000 of $400,000 owed Yorke's management company - Wasserman Media Group - and is refusing to pay the final instalment which was due last August.
Sydney FC chief executive George Perry confirmed the claim.
"I am aware of the cases. It pre-dates me but I know we've been talking to WMG and we're trying to find an outcome," he said.
Previously there had been speculation Yorke was keen to return to Sydney FC despite departing in acrimonious circumstances to join English Championship club Sunderland last year.