The League's solicitors made the offer on Tuesday, three weeks after being served with a High Court writ by United.

Ken Bates is looking to overturn the 15-point penalty imposed by the League on the eve of the season for what they consider to be a failure to follow insolvency policy. United declined to comment last night but it's understood the League want the three-man arbitration panel to sit in private to hear both sides' argument.

This is believed to be contrary to the wishes of Bates who has continuously called for the matter to be heard in public in order that "justice can be seen to be done".

Speaking in Tuesday's Yorkshire Post, the United chairman said: "To quote their words (in the solicitor's letter to the club), 'impartiality and independence of the tribunal will be par excellence'. Impartiality and independence is what we have been arguing for all along."

The League have steadfastly refused to comment on the legal action, though chairman Lord Mawhinney did last week promise to fight the action "robustly" in a letter sent to member clubs.

Meanwhile, Stephen O'Halloran will go straight into Gary McAllister's squad to face Swindon Town tomorrow after joining on a month's loan from Aston Villa.

The 20-year-old left-back will now be in competition with fellow Irishmen Alan Sheehan for a starting place after Ben Parker was loaned to Darlington.

The position has been something of a problem for United this season with Sheehan, Parker, Eddie Lewis, Andrew Hughes and Jamie Clapham all filling it at various times.