London - Former West Ham United chairman Eggert Magnusson is suing club owner Bjorgolfur Gudmundsson over the terms of his exit from Upton Park last year, it has emerged.

Documents filed at the Reykjavik Municipal Court earlier this week show that Magnusson is demanding a pay-off of 200 million Iceland krona (1.65 million dollars).

Gudmundsson is looking to sell the club after losing 250 million pounds (377 million dollars) when his Landsbanki bank in Iceland collapsed.

Magnusson became chairman of West Ham in November 2006, when he bought the club with Gudmundsson through WH Holding Ltd, but was relieved of his duties a year later when Gudmundsson added his five per cent stake to his controlling interest.

He insists he was paid only around half of the three months' pay he was owed under the terms of his contract. (dpa)