Edinburgh Rugby have vowed to issue legal proceedings against the Scottish Rugby Union (SRU) within a fortnight after the governing body rejected an offer of mediation to resolve their financial dispute.

Edinburgh owner Bob Carruthers contends that his club are owed a six-figure sum by the SRU in overdue Heineken Cup and Magners League payments, however that claim has been denied by the national body.

The club have repeatedly called for the governing body to enter into formal talks with lawyers present to solve the row, but that proposal was rejected by the SRU tonight.

A statement from the governing body read: "Following the continued and extensive leaks to the media of confidential information and documentation in regard to the relationship between Scottish Rugby and Edinburgh Rugby Limited, Scottish Rugby has concluded today that mediation is no longer an option."

Within half an hour, the club responded with a pledge to take the matter to the courts.

Officials said they would issue a writ over alleged shortfalls in payments, failure by SRU to comply with contractual obligations, and breach of warranty, which would run "well into seven figures".

A statement from the club read: "Edinburgh Rugby's door remains open to any offer of mediation or negotiation from SRU.

"However, in the absence of an offer to mediate or negotiate directly, Edinburgh Rugby will assert it rights through the courts.

"An expert accountant report is being finalised and proceedings will be served within the next two weeks."