Falkirk are seeking compensation after striker Mark Stewart joined League Two outfit Bradford City.
The Scottish First Division club insist they have protected their rights to be paid training and development money for the player.
Falkirk's website said the clubs are discussing a transfer fee but that it would be referred to a Fifa tribunal if terms could not be agreed.
Stewart, 23, signed a two-year deal with the Bantams last week.
Meanwhile, former Dunfermline goalkeeper Greg Fleming and former Rotherham United defender Jamie Green have joined Bradford on trial.
Fleming, 24, previously played for Gretna, Livingston and also turned out for Irish Premier Division side Galway United during the last four months of last season, following a move away from League One side Oldham Athletic.
The 21-year-old Green left Rotherham this summer after four seasons at Don Valley Stadium.