Mosimane is reportedly seeking a R10 million payout from Safa after he was unceremoniously booted out of office three months ago.
He was sacked immediately after Bafana's draw with minnows Ethiopia in a 2014 World Cup qualifying match.
The former Bafana coach claims he was unfairly dismissed. Early last month the CCMA gave the two parties a three-week timeline to resolve their differences.
Safa are reportedly willing to pay Mosimane R5 million, which the outspoken coach has refused to accept.
Mosimane is being represented by Cowan Harper Attorneys while the head of Safa's legal department – Nathi Ngcobo – is handling the dispute on behalf of the football mother body.
"The two parties are likely to find common ground. If they fail to agree, then the case will have to go to arbitration," says a source at Safa.
Contacted for comment, Ngcobo declined to reveal if Safa would give into Mosimane's demands.
"The matter of Mr. Mosimane is still sub judice and no further details can be given at this stage," Ngcobo tells KickOff.com.