Kenny Dalglish last night insisted he did not resign as Newcastle manager but was sacked, and has appointed legal advisers to fight for compensation.
The club's plc said on Thursday that it had been advised by Dalglish on August 18th that he wished to quit as team manager as soon as possible, though not before a replacement was appointed.
A Newcastle United statement said: "Despite strenuous efforts to maintain absolute secrecy, these facts have become public knowledge prematurely."
But last night the Scot, who has resigned from managerial posts at Liverpool and Blackburn in the past, was adamant he had been dismissed by Newcastle.
In a statement Dalglish said: "Newcastle United plc's press release is seriously inaccurate. Their statement says that the club `reluctantly agreed to release Mr Dalglish from his contract'.
"The truth is that I did not resign. They terminated my contract without notice or any prior warning to me.
"I received first news of Newcastle United's decision through the press. No offer of compensation has been made. I have appointed legal advisers and will defend the interests of myself and my family vigorously.
"I have been advised that I can make no further statement, but in the meantime I wish the club, its players and its supporters every success in the future."
Dalglish (46) was set to leave his Southport home to travel to Newcastle's training ground at Chester-le-Street yesterday morning, intending to speak to club officials following a newspaper report which claimed he had been jettisoned.
However, he then decided to return home to await developments - which culminated in him receiving a telephone call from chairman Freddy Shepherd to confirm his spell as manager was over.
If he was sacked, Dalglish - who first said yesterday evening that he would take legal advice over his departure from Newcastle - would be due a massive pay-off from Newcastle likely to run into seven figures with almost two years of a three-and-a-half year contract to run.
He also revealed yesterday that he thought someone was "winding him up" when he first heard of his impending departure from the North-East club on Wednesday.
Dalglish resigned from his Anfield post because of the pressures of the job but he always insisted he would not run away from the size of the task facing him at Newcastle.
Shockwaves reverberated around the football world when it was revealed Dalglish was leaving St James's Park, with League Managers' Association chief executive John Barnwell saying on Thursday: "It defies all logic.
"Surely if Newcastle felt that strongly about Kenny they could have got rid of him during the close season and given him and the new manager a chance to sort themselves out."
The sacking season for bosses has always traditionally started in November - but with Dalglish departed and Christian Gross under pressure at Tottenham, it seems it has already begun.
