Nigel Adkins is chasing compensation from Southampton after his sacking.
The Daily Mail says he is starting legal action over his pay-off.
Adkins, who delivered back-to-back promotions and improved the Saints' position by 51 places in the pyramid in just 26 months, is instigating the Premier League managers' arbitration tribunal process for 'breach of contract'.
Adkins had more than three years left on his Southampton contract and the club, run by controversial chairman Nicola Cortese, have been paying him as usual on a month-by-month basis since his dismissal rather than commit to a full severance package.