Robbie Fowler is seeking damages from former club North Queensland Fury over his terminated contract.
Following the corporate re-structure of the Fury, several players had their contracts terminated with six players already negotiating settlements but Fowler is yet to come to terms.
The former Liverpool star has since signed a new deal with the Perth Glory and a case has been launched by Professional Footballers Australia (PFA) on Fowler's behalf against the Townsville-based club and Football Federation Australia (FFA).
PFA chief executive Brendan Schwab confirmed that legal action will be taking place.
"To Robbie's credit, he could have gone and played in just about any country around the world and forgotten about the Fury situation, but he is committed to developing the Australian game and ensuring contract security for Australian players."
Fowler added in a statement: "Players make career and lifestyle changing decisions in reliance on the contracts they have signed.
"Obviously, the game's extensive efforts to attract the highest calibre of players into the competition are only as strong as the security of the contracts they sign.
"This case is not about the compensation, it is about ensuring contract security for all players in the A-League and more specifically for the players who have suffered from the way in which the FFA handled the player contracts.
"Players like James Robinson, Scott Wilson and Jacob Timpano whose careers have been cut short after being terminated while recovering from long-term injuries.
"Players like Paul Henderson and Chris Tadrosse who moved their families to Townsville in good faith that their contracts were secure.