New Balance are legally challenging Liverpool's plans to strike a new kit deal with Nike.
It is understood New Balance have a matching" clause in their current contract, which would allow them to extend their own deal should they offer the same.
"We can confirm that our kit supplier, New Balance, has commenced a legal dispute against the club. We will not be making any further comment during these legal proceedings," a Reds statement read.
The Mirror says Nike have offered a base figure which significantly improves the current New Balance deal of 45m a year, but also includes a further fluctuating amount based on worldwide sales.
And it is here that the dispute has erupted, with Liverpool reportedly rejecting the claim that New Balance have met the conditions of their current contract by matching the improved offer.
The Reds are hoping that on-field success will deliver a total deal with Nike, that could get close to the 110m a year Real Madrid earn with Adidas, and the 100m a year Nike already pay to Barcelona.
