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The FA arbitration panel, which last week ruled West Ham were liable for damages, had been due to begin timetabling how United's claim would be assessed.

But the London club have asked for a postponement after changing their legal team – and amid hopes that an appeal to the Court of Arbitration for Sport (CAS) will derail United's hopes of a multi-million pound payout.

The Hammers are expected to submit an application to CAS today and are clearly digging in for a battle with the Blades, with a promise that "the saga still has a long way to go."

After engaging the help of Manchester United director and lawyer Maurice Watkins to fight the potentially financially crippling case, West Ham have dashed the Blades' hopes of an early settlement. A club spokesman said: "We cannot discuss these matters in detail as there are still legal proceedings underway. "We can confirm we are looking at potential challenges to the arbitration panel's judgment not only for ourselves but in the wider interests of English football."

West Ham's hopes of challenging the FA arbitration outcome may well be hindered by United's unwillingness to submit to the CAS process – and by the FA, who yesterday said such a move would require their own agreement.

FA rules state that arbitration entered into by two clubs in dispute is binding, without recourse to further appeal.

The Blades last night declined to comment on the latest developments but it is understood they remain committed to pursuing West Ham for the full damages claim.

When the panel's next hearing is rescheduled, independent accountants are likely to be appointed to pick through the claim which is based around United's losses caused by relegation from the Premier League.

West Ham may yet face further action from the Premier League after the arbitration judgment said the club had breached rules a second time for the way it ensured Tevez played the last clutch of games in 2006-07.

After an initial disciplinary commission fined the Hammers £5.5m for breaching rules on third party ownership – and keeping the contractual arrangements with Tevez from the Premier League – the Londoners were allowed to play the Argentinian star only on the understanding that the agreement had been ripped up.

But the arbitration judgment found that West Ham told Tevez's representative, Kia Joorabchian, they would hold to the terms of the agreement despite the assurance to the Premier League – which amounted to "further breaches of the obligation under Rule B13 to behave with the utmost good faith towards the Premier League."

West Ham are understood to contest the panel's judgment on the further breach of rules. The Premier League will make no decision on what disciplinary action it will take, if any, until the damages claim is resolved.

Blades officials are hoping to make progress today in their quest to sign Brian Howard after Barnsley rejected claims that a deal had already been agreed.

The midfielder still wants to join but the Tykes are unhappy with the terms of the deal, and in particular the proposed sell-on arrangements. Charlton are also keen on the player.