Claudio Ranieri will open legal proceedings against former club Valencia after failing to reach an agreement over his pay-off following his sacking as coach last month.

The two parties failed to reach agreement at an arbitration meeting on Tuesday and the Italian’s lawyer said he would initiate legal action against the club.

“We have two months before we appear in person before the court and during that time we will try to reach an amicable settlement but I think it will be very difficult,” Juan de Dios Crespo told AS.

Ranieri, who was sacked just eight months into a three-year deal with the club, is reported to be demanding the payment of his contract in full. This would entitle him to €8.1m.

Valencia have contested this figure, arguing that his performance did not merit a full pay-off.

“We are a long way off reaching an agreement,” Valencia’s legal representative Eduardo Garcia told Spanish daily El Pais.

“We are not going to pay him 100 percent of the contract. A court will have to decide how much we have to pay.

“He wasn’t sacked on a whim, there were reasons to justify our action. If he didn’t do his job properly then we are within our rights to rescind his contract.”