Belgian coach Luc Eymael could file a lawsuit close to R10-million against SAFA for defamation of character and loss of income.
Eymael has written to the FIFA Ethics Committee to try to intervene in his issue with SAFA after the country's football association sought to ban him from working in the country.
SAFA's stance follows allegations of racism that reportedly occurred when he was coaching Young Africans in Tanzania last year.
Eymael was set to join Chippa United recently but his move to Port Elizabeth was stopped by SAFA, who demanded the Department of Sport and Recreation block his work permit application.
But the former Free State Stars, Polokwane City and Black Leopards coach has maintained his innocence and claims that he has not been tested in any football or legal structure to prove the allegations against him.
"Yes it's true, the matter has been referred to the FIFA Ethics Committee but I cannot discuss it because it's being handled by my lawyers," Eymael tells KickOff.com from Belgium.
Meanwhile, this website has also learnt that SAFA had been prepared to fine Chippa United chairman Siviwe Mpengesi had he proceeded to appoint Eymael as head coach.
Mpengesi received a backlash from several South African authorities when the club initially announced Eymael as the replacement for Lehlohonolo Seema.