The continuing wrangle over the Carlos Tevez affair could become even more complicated after West Ham threatened to take legal action against Sheffield United - hours after the Blades started their own proceedings.

The Yorkshire club recently failed in their High Court bid to force a new Premier League action against West Ham over the Carlos Tevez affair.

However, they have now decided on a new course of action which they hope will lead to the award of considerable damages. They have estimated the cost of their relegation at between £30million and £50million.

The Blades are suing over a breach of contract and claim to have evidence which proves West Ham "misled" the original independent panel by failing to disclose vital information relating to their arrangement with Tevez's adviser Kia Joorabchian.

But, stung by the allegations of their wrongdoing, the Hammers last night revealed they are considering a counter action to clear their name.

"Sheffield United's latest assertions clearly demonstrate a fundamental misunderstanding of the situation, and any proceedings brought by them will be vigorously defended by West Ham," a statement read.

"In the meantime, West Ham and the new owners will not permit these repeated slurs to go unchallenged and are in discussions with their legal advisers in relation to the action they might take."

The statement added: "We are extremely disappointed that Sheffield United have seen fit to embark on this latest desperate action.

"Not only does Sheffield United's claim lack legal merit, but it is also based on their incorrect belief that West Ham withheld an agreement from the Premier League and the April disciplinary commission."

Earlier the Blades had themselves issued a statement which read: "Sheffield United today announced that we are to issue proceedings against West Ham United in connection with the 'Tevez Affair'.

"Sheffield United will claim substantial damages for breaches of contract by West Ham.

"The move comes as the transfer of Carlos Tevez from West Ham to Manchester United is completed and the player makes his debut for his new club.

"Sheffield United's basis for the claim is that West Ham acted dishonestly in obtaining the registration of Carlos Tevez and Javier Mascherano, in that they failed to reveal that those players were owned by a third party.

"The Premier League would not have registered those players with West Ham had they known the true position.

"Sheffield United are confident that sufficient remedies exist in law to ensure the Tevez affair cannot simply be brushed under the carpet."

West Ham were fined £5.5million by the Premier League over the Tevez affair in April.

Sheffield United believe they should have been docked points for such a serious breach of rules but failed in their attempts to have the original punishment changed or the hearing reconvened.