Black's side suffered defeat in their play-off against Brechin City
Airdrie United and sacked manager Kenny Black have been unable to reach agreement over compensation.
And the 46-year-old, who had two years left to run on his contract, is still being paid by the club.
It is believed that Black has taken the matter to the managers and coaches association and also sought legal advice on the issue.
Black's dismissal was announced on Saturday, following the Diamonds relegation to Division Two.
Jimmy Boyle, who was in charge of youth development and the club's under-19s, has been appointed interim manager.
Black had been in charge at Excelsior Stadium since 2006. However, he had been unsure if he would continue in post when speaking immediately after they lost to Brechin in the play-off semi-finals.
Chairman Jim Ballantyne had later promised to "rip the club apart" after a season he described as a "financial disaster".
He said that the club would have to consider moving to part-time football.
The club can confirm that Kenny Black has been relieved of his duties as first-team manager
Airdrie United statement
And, last week, Airdrie warned that the future of the club was under threat if fans did not take up the offer to buy shares in the club.
Black had been a midfielder with Rangers, Motherwell, Hearts, Portsmouth, Airdrieonians and Raith Rovers before becoming assistant to Sandy Stewart.
Craig Levein took him to Leicester City before Black became Airdrie manager after the future Scotland coach was sacked by the English club.
During his time at Excelsior Stadium, the side were relegated to Division Two after a play-off defeat in 2007 but promoted the following season despite another play-off defeat - having finished second - because Gretna went out of business.
They were relegated last year but were handed a reprieve and reinstated in Division One following Livingston's demotion to the Third Division because of their financial problems.
After the latest aggregate defeat by Brechin, who went on to lose the play-off final to Cowdenbeath, Black admitted that he had to think about his family, who remain in England, before considering his own future.
Interim manager Boyle, 38, had two spells as a player at Excelsior Stadium as well as playing with Partick Thistle, Livingston, Alloa Athletic and Cowdenbeath.
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