• Pretty angry ... Jim Magilton (Getty Images)
Dumped Melbourne Victory coach Jim Magilton threatened legal action against club in response to having the offer of a new deal pulled off the table.

4 Apr 2012 - 5:56 PM  UPDATED 5 Nov 2012 - 10:05 AM

Instead of departing back to Britain after being told that his short-term contract would not be extended by Victory late last month, the Northern Irishman remained in Melbourne to seek legal advice.

A club source insisted on Tuesday night that Magilton was set to fly out and that everything had now been 'sorted".

Magilton, who could not be contacted by The World Game on Wednesday evening, was seeking compensation from the club through the courts on the grounds that he had been told that a three-year contract extension was his before the offer was withdrawn after the final round of the regular season.

He was informed that his name would instead be considered along with a series of other interested parties.

Magilton – whose record of just two wins from 12 matches was less than inspiring as Victory failed to qualify for the finals – quickly withdraw from the race and while publicly accepting the decision with grace through a joint statement between himself and Victory, privately he reacted with indignation and fury over what he construes as broken promises.

A close friend of Magilton’s told TWG: 'Jim is pretty angry and has been looking at legal action against the club. He was told that the negotiations between himself and the club were exclusive and he was told it was just a matter of fine tuning the deal in what were meant to be exclusive negotiations.

'He was even given the go ahead to rebuild the team. It was indicated to him that the only thing which could have scuppered the deal was if he asked for too much money or ridiculous conditions.

'But to then be informed then that the club was going instead to the market was something he didn’t bargain for."

It’s understood the Victory board, whose next appointment will be its fourth inside 12 tempestuous months, now believes it has an in-principle agreement with Brisbane Roar mentor Ange Postecoglou, who on Wednesday refused to commit his future to Brisbane beyond this season.