Aston Villa striker Savo Milosevic and chairman Doug Ellis are at loggerheads over whether the club have the legal right to hold on to the Yugoslav for an extra year after next summer. Milosevic thought he would be able to leave after three years - and speculation has been rife that he has already reached an agreement to sign for Villa's UEFA Cup quarter-final opponents Atletico Madrid.

But Ellis insists Villa are within their rights to extend Milosevic's contract via a 12-month option clause until the summer of 1999 - and he claims he has the backing of the Football Association and FIFA.

Milosevic believes this is unlawful and has asked his own legal representatives to see whether he can challenge the contract.

But Ellis said: "Savo Milosevic has got it all wrong. He has been formally told that we have accepted the option we have on his original contract.

"His contract with Aston Villa now expires in June 1999. It has been confirmed by the Football Association and by FIFA. It is legally binding."

Villa are also entitled to demand a fee for Milosevic contrary to what some reports have been suggesting, because he is a non-European Community player and is not under the umbrella of the Bosman ruling.