The Premier League has agreed to set up an arbitration tribunal to rule on Sheffield United's complaints over the registration of Carlos Tevez.
Tevez joined West Ham along with Javier Mascherano in August
The Blades are challenging a decision to fine West Ham rather than dock them points and cancel Tevez's registration.
The League admits that the Blades have the right to ask for an arbitration panel, but have told the relegated club they are wasting their time and money.
The relegated Blades want West Ham to take their place in the Championship.
Had West Ham been deducted points over the affair, they could have finished below Sheffield United, who were relegated after their last-day loss to Wigan.
An unnamed source close to Sheffield United said: "We received a letter from the Premier League on Tuesday telling us they do not think we have any grounds to request arbitration - but they accept it is our right to do so.
"They have said they will not appoint anyone until Friday to give us the opportunity to withdraw the request - basically they are saying we are wasting everybody's time.
"We still believe these matters need to be resolved so we will press ahead and ask for arbitration and we hope that this process can be concluded before the end of June."
The row is over an independent commission's decision to fine West Ham £5.5m rather than dock the club points for signing third-party agreements in contravention of league rules.
The Premier League say they are satisfied West Ham ended those agreements as soon as they were ordered to so, and that the independent commission's decision cannot be appealed against by anyone except West Ham.
The Premier League and United will nominate one member each of the tribunal.
These two members would then choose a chairman. The tribunal would effectively have the powers of a court and the parties would agree in advance to abide by any decision reached.
The club is also challenging the Premier League's "conduct in failing to conduct an adequate investigation into the continued fielding of Tevez after the 27 April decision, despite serious questions over his eligibility".