Chester FC have rejected an initial offer of compensation from Tranmere Rovers for striker James Alabi.
The ex-Blues forward, who scored 17 goals for Chester last season, signed for National League rivals Rovers on a two-year deal this morning with the Blues being entitled to compensation.
Tranmere made contact with Chester chief executive Mark Maguire this morning with an offer which has been flatly refused by the club, although the Blues remain open to ongoing dialogue before a potential tribunal to resolve the matter.
A club statement read: “Chester FC are aware of the announcement from Tranmere Rovers that James Alabi has put pen to paper on a two-year contract.
“To make the situation clear, James was free to sign with the club of his choice following the expiry of his contract. We have put everything in place to protect the clubs position and if compensation cannot be agreed between the two parties the matter will pass to a tribunal.
“As of this time a satisfactory offer of compensation has not been received. Notwithstanding this, we would like to put on record the fact that James has been respectful of Chester FC throughout and indeed thank him for his efforts during his time here when he began to thrive as a player and of course gained his first call up as an England C International.
“We wish James good luck for the future and are focussed on an exciting season ahead with a strong set of recruits and fantastic support from our wonderful fans. We will of course issue further updates as and when appropriate.”
Alabi, 22, was the subject of a £10,000 bid from League Two side Barnet in January and Chester want compensation in excess of that figure with a sell-on clause attached.
