Birmingham City's row with West Ham United continues to escalate.

The Mirror says David Sullivan has offered £500,000 cash to settle his row with Carson Yeung - but Birmingham's new owner has rejected it.

Hong Kong tycoon Yeung took over Premier League City from Sullivan and David Gold last October in a £81.5million deal.

But Yeung was livid at inheriting bills and liabilities totalling £11million and being obliged to give MD Karren Brady a bumper pay-off.

The new regime were further annoyed to find Sullivan and Gold paid themselves advance 2010 management fees before leaving worth £420,000.

Sullivan, now in charge of West Ham, has offered to repay the money plus interest to end the on-going row.

But City have snubbed the offer and are still investigating ahead of an imminent announcement about the club's finances.

The depth of anger between the two camps has even seen Yeung return a peace offering from Sullivan.