Livingston insist Irish winger Wes Hoolahan will not be signing a two-year contract with Blackpool.
Livingston signed Hoolahan from Shelbourne in January 2006
The 25-year-old has agreed a permanent switch to the League One play-off champions after a year on loan.
However, Livingston claim Blackpool repeatedly breached the terms of their agreement and won't sanction the move.
A statement from the West Lothian club read: "It is quite clear that the player remains with Livingston until and unless a settlement is reached."
Livingston claim that nine out of 10 payments for Hoolahan were late "despite repeated efforts to ensure prompt payment within the original terms of the loan deal".
The statement continues: "We could have recalled the player on these grounds during last season.
"But to do so would have meant he had no right to play for Livingston or Blackpool because a recall would probably have taken place outside the transfer window.
"Wes had a successful year with Blackpool but the club only have themselves to blame for the situation that has arisen."
Blackpool deny that they failed to honour the loan payment conditions and have referred the matter to the FA.
Livingston have asked the Scottish Football Association to intervene.