Dan Ashworth will take Newcastle United to arbitration in order push through his move to Manchester United, talkSPORT understands.
The Magpies' sporting director is currently on gardening leave after he informed the club that he wished to pursue the opportunity at Old Trafford.
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It's understood that Newcastle are demanding up to £20million in compensation to allow Ashworth to break his contract and move to Manchester.
But with no deal looking likely at present, the case now looks set to be decided by a third party.
It's said the case will start in May and take a number of weeks, however Man United have refused to comment.
Sir Jim Ratcliffe is keen to bring Ashworth to Old Trafford as sporting director where he'll join Jason Wilcox, who arrived as technical director last week.
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Newcastle are already preparing for life without Ashworth having started their search for his replacement.
In doing so, the Magpies have placed Dougie Freedman on their final shortlist for the role, talkSPORT understands.
Crystal Palace are aware of Newcastle's interest in their transfer guru, who is also being mooted for the role of Manchester United's head of recruitment.