Diane Modahl explains the situation to Radio 5 Live

Modahl is suing BAF, placed in administration last October with debts of around £2million, after successfully fighting a four-year ban for 'failing' a drugs test and being sent home from the 1994 Commonwealth Games.

The 32-year-old, who had to sell her Sale home to fund the long-running legal battle, is suing for £800,000, although her lawyers have been negotiating with the Federation's administrators to reach a financial settlement.

The administrators cannot pay other creditors until a settlement with Modahl, who competed in the 800m for Britain at last week's European Championships in Budapest, is reached.

Diane Modahl cleared her name after being banned for four years

"I have now instructed my lawyers that, in the absence of some sensible proposals from BAF, the case has to continue and a trial date has to be fixed at the first possible opportunity," said Modahl.

"The administrators have a clear choice. Either they persuade the other creditors to fund the legal costs of fighting the case to trial or they continue discussions with us with a view to resolving all outstanding issues.

"But I cannot be expected to keep my claim on hold and so, as from September 1, my lawyers will be taking the necessary steps to advance the proceedings."

Modahl, currently training in Switzerland for next month's Commonwealth Games in Malaysia, added: "The sensible outcome would be for the administration to be completed and for all the creditors to receive a distribution.