Valencia and David Albelda have been urged to find an agreement over the midfielder's contract by the judge now listening to the case.
After the hearing, Albelda said: "They (Valencia) have not given me any explanation (why he has been dropped from the first team). Not the president (Juan Soler) nor (coach Ronald) Koeman."
Asked if he could settle his compensation demands before the judge delivers his verdict, Albelda added: "It's what we have sought from the beginning, it has always been our willingness to talk.
"We're now not talking about a financial issue. The problem is I won't be allowed to go to another (Spanish) team."
Marca says Koeman argued before the judge that his decision was "final" from the beginning, and that he did so with the knowledge of president Soler.
He also said it was "imperative to take steps" to some solve "problems" that existed in the locker room - which led to the freezing out of Albelda, Santiago Canizares and Miguel Angel Angulo.