The PFA - acting on behalf of Culina - served FFA with legal papers to reportedly sue the governing body for $1.7million after it was revealed the marquee player had not been insured since his return to the A-League.

According to the league's collective bargaining agreement, the FFA are supposed to ensure that insurance is in place to cover wages for at least two years, in the case that a player is injured.

It's understood Gold Coast United failed to insure Culina when he was signed as their marquee player back in 2009.

He picked up an injury at the Asian Cup in January this year and as GCU had no insurance, they were forced to continue to pay his wages until he was released to play with Newcastle.

But FFA hit back at the claims on this morning.

"The PFA is trying to make out that this situation involving Jason Culina can be boiled down to a dispute between FFA and Jason over insurance," said FFA Head of Corporate Affairs and Communications Kyle Patterson.

"This assertion is a red herring, a quite mischievous distraction from what's happening. You have to question the PFA's motives in running this line through the media.

"FFA doesn't intend to talk specifically about Jason's case, other than to say our advice is that the Newcastle Jets have been meeting their obligations under Jason's contract, as they should.

"We also understand that Jason is working hard on his rehabilitation in order to get back into action, which is great news for Australian football.

"Jason is one of the modern legends of the game with his service to the Qantas Socceroos in a golden era for the game. On behalf of the football community, we wish him well in his efforts to return to playing football."

FFA also clarified the facts around insuring marquee players in the A-League.

"Any club that decides to contract a marquee player does so knowing they are responsible for all costs, including insurance, and any liabilities arising from that engagement," the statement said.

"The cost of marquee players, as with the benefits, rest with the individual club, not the FFA or the Hyundai A-League or other clubs, some of whom have made the decision not to sign marquee players."