Ward left Brunton Park last week after 13 months in charge
The League Managers Association has threatened legal action against Carlisle United in a bid to "protect" former manager John Ward.
The LMA claims Carlisle are trying to "avoid their legal liabilities" by saying Ward resigned his post.
Carlisle chief executive David Allen told BBC Radio Cumbria that the club's solicitors are currently in discussion with the LMA over a settlement.
Ward, who parted company with Carlisle last week, claims he was sacked.
The Cumbrians announced that Ward left Brunton Park by "mutual consent" following a return of just one point out of a possible 30.
The LMA has instructed their lawyers to ensure its member is fully protected
League Managers Association statement
The League Managers Association, which represents all Premier League and Football League bosses, issued its statement on Tuesday evening.
The statement read: "The LMA is very disappointed that Carlisle United, having clearly dismissed John Ward, are now seeking to claim that John resigned simply to try to avoid their legal liabilities.
"As a result the LMA has instructed its lawyers to ensure their member is fully protected."
Ward's 13-month stay at Brunton Park ended just three months into the season. Last season, he helped guide Carlisle to the League One play-offs before eventually losing to Leeds United in the semi-final.
The Cumbrians are currently just one point off the relegation places on the back of a run of 11 defeats in the last 12 games.
Assistant Greg Abbott has been placed in caretaker charge.
In response to the LMA's statement, Carlisle United issued their own, saying they were "surprised and disappointed" by the claims.
The Cumbrians' statement read: "Carlisle United believe it is inappropriate and unhelpful for any one-sided opinions or supposed fact to be expressed publically.
"We believe it is the correct course of action for the issue to remain private and for details not to be revealed while negotiations continue in confidence,
"The club wholeheartedly rejects the LMA's accusation that we were simply trying to 'avoid their legal liabilities'."
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