Former World Cup winner Dunga has instructed lawyers to recover a loan from Queens Park Rangers that he paid to the club's previous owners, worth in the region of £750,000, after the club's current owners maintained that they will not repay the debt.
The former Brazil manager had invested in the newly promoted Premier League club when it was under its previous ownership. Now that the club is in the hands of new owners, including Flavio Briatore and Bernie Ecclestone, Dunga is seeking repayment of his money, but has so far found himself frustrated
"I loaned my money to QPR in good faith when they needed it and am very disappointed that the new owners, who are very wealthy, are now refusing to pay it back," the 47 year old Dunga said in a statement by his lawyers.
"I am fully confident in the English system of justice and that the court will help me recover my loans."
He has instructed lawyers Collyer Bristow to pursue his claim in the High Court if necessary and Steven Heffer, of Collyer Bristow, said: "I can confirm I have been instructed by Carlos Dunga to issue proceedings in the High Court to recover the money he lent to QPR.
"I am waiting to hear back from QPR's lawyers whether the loan will be repaid without the need for a court action. It would be inappropriate to say anything further at this stage."
Queens Park Rangers are yet to comment on the situation.