Norwich City are furious after Manchester City swooped for their England U17 goalkeeper Angus Gunn.
The People says Gunn, the son of former Carrow Road manager Bryan, moved north this summer but the Canaries are threatening to take the Eastlands club to a tribunal over the fee.
The Blues recruitment chief Brian Marwood has offered just £350,000 in compensation for the outstanding young prospect, with Norwich wanting £1million.
If the clubs cannot agree a fee, the issue is likely to go before the Professional Football Negotiating and Consultative Committee.
While Gunn senior represented Scotland, 15-year-old Angus has nailed his colours firmly to England's mast.
