Sheffield United have invoked the Football Association's arbitration process in their legal challenge to win compensation from West Ham.

The Blades have informed the FA they intend to take the dispute over the Carlos Tevez affair to their arbitration panel.

The club have already lost a Premier League arbitration hearing and were refused leave to appeal against that in the High Court.

West Ham, who have 14 days to respond, will challenge Sheffield United's right to now go to an FA arbitration hearing.

Sheffield United claim they are due compensation for being relegated because West Ham should have been docked points over the Tevez saga.

They have estimated the cost of their relegation at between £30million and £50million.

The Blades are suing over a breach of contract and claim to have evidence which proves West Ham "misled" an independent disciplinary commission by failing to disclose vital information relating to their arrangement with Tevez's adviser Kia Joorabchian.