Blackpool are considering legal action against Simon Grayson and Leeds after he was announced as the new manager of the Elland Road club
The Seasiders refused Leeds permission to speak to the 39-year-old, who guided the club to promotion to the Championship in 2007.
But Leeds today revealed that Grayson, 39, had been appointed as their new manager, prompting a furious response from Blackpool who say they have not accepted his resignation.
The club said in a statement: "Blackpool FC can confirm that Simon Grayson tendered his resignation at 0830 on Tuesday morning.
"The resignation was not accepted by the board of directors and the club and are now considering legal action against both Simon Grayson and Leeds United."
Leeds moved for Grayson in the wake of the decision to sack manager McAllister after a dismal five-match losing streak.
Grayson, joins Leeds after a six-year stint at Blackpool, first as a player then as manager.
The Yorkshireman started his career at Elland Road as an apprentice and made two senior appearances for the club before joining Leicester in 1992.
Grayson becomes the ninth manager at Elland Road in the last 10 years.
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