Former World Cup referee Hugh Dallas looks set to launch unfair dismissal proceedings against the Scottish Football Association (SFA).
Dallas was controversially sacked from his position as the organisation's head of referee development in November this year and has now lost an appeal against the decision, the Sun reports.
However, the 52-year-old can still take the SFA to an employment tribunal and is thought to be considering that course of action.
An insider told the newspaper: "Sources in the SFA understand he now intends to take them to an employment tribunal in the new year."
The senior official was dismissed after allegedly sending an offensive message containing a joke about the Pope and the Catholic priests' child abuse scandal from his work email account.
He appealed to SFA president George Peat and human resources specialist Viv Coady, but they upheld the decision of chief executive Stewart Regan.
Dallas, who officiated at the Fifa World Cups of 1998 and 2002, has three months to formally submit a claim for unfair dismissal at an employment tribunal.
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Posted by Daniel Stevens