The Blades maintain they were unfairly demoted after West Ham were found guilty of breaching league regulations over the Carlos Tevez affair.

West Ham, who survived relegation only on the final day of the campaign, were fined £5.5million but United have long maintained points should have been deducted.

That would have meant a reprieve for the Yorkshire club but after a long-running saga in which the club failed in an attempt to have the original punishment changed, United now want a financial settlement.

Sheffield United plc chairman Kevin McCabe said: "We are heading towards a Football Association tribunal.

"A date has been set for next year and respective clubs are now going through respective submission of claims.

"We are led by the availability of QCs and the panel, so it's more likely mid-2008 than early. It's frustrating but that's the way the law works.

"We have regrettably gone beyond reinstatement so it's about financial compensation for having been relegated unjustly after another club, we purport, broke the rules."

United have since found life back in the Coca-Cola Championship under new manager Bryan Robson difficult.

The club are 14th in the table, five points off the play-off positions, after a 3-1 win over Ipswich last night.

McCabe insists there is no need for panic.

He said: "It's been a frustrating start, I think every Sheffield United supporter realises that.

"I'm a supporter too but I believe in our management duo we have got commitment, determination and effort that will pull it through so this season will still be a success."

Asked for his views on the season so far McCabe added: "I think puzzled and perplexed is probably the best answer.

"We all believed we'd be higher up the table but we've seen in years past in this league, if you can put a run together you can catch up."