Pitso Mosimane has sent a letter to the South African FA, threatening to take them to the CCMA for unfair dismissal.
Mosimane was sacked as Bafana Bafana coach on Tuesday morning after a horror run of results, culminating in a 1-1 draw in their opening 2014 World Cup qualifier.
Safa are still negotiating a settlement with Mosimane, who has now gone down the legal route.
"We advise that we act for Mr Pitso Mosimane, the former coach of the national soccer team of South Africa," his lawyers, Cowan-Harper Attorneys, said in a letter addressed to Safa CEO Robin Petersen.
"On the instruction of our client we have attempted to contact you during the morning of Wednesday, 6 June 2012.
"The employment of our client has been unfairly and unlawfully terminated by Safa and accordingly our client is entitled to refer a dispute to the CCMA.
"It may, however, be possible for the parties to resolve their differences and accordingly we wish to arrange a meeting in order to discuss the matter."But Petersen says he is confident the matter will be resolved before it comes to that.
"I don't think it will get that far, but if that is the road they want to take, then it's fine," Petersen is quoted by Safa.
"As the [press] release [on Tuesday] said, we agreed amicably on the coach leaving and had telephonic conversations with different lawyers. The amounts of the agreement were discussed, but not resolved.
"It is part of life and the labour laws we live in, and unfortunate that we'll have to argue in public about it."