July 16 Mickey Arthur is demanding 3.6 million dollars in compensation or reinstatement as Australia's cricket coach following his sacking last month, according documents seen by the country's Seven News TV station.
South African Arthur also claimed to have suffered racial discrimination and said that captain Michael Clarke had described fellow batsman Shane Watson's influence on the team as "a cancer."
Arthur was earning 400,000 Australian dollars ($363,700) a year and up to 200,000 in bonuses. He was contracted until June 2015 and wanted payment for three years beyond that, estimating his losses to be as much as 4 million Australian dollars ($3.64 million).
"We're disappointed that it's come to this position," Cricket Australia lawyer Dean Kino told Seven News.
"But Cricket Australia is confident in its position on this matter. And I'm sure it'll get resolved in the appropriate fashion."
The TV station said the documents reveal tension between Clarke and Watson, particularly regarding team discipline.
Arthur was sacked after David Warner punched England's Joe Root in a bar, the latest in a series of disciplinary issues to dog the team.
He added that he felt discriminated against because he was South African and did not understand the 'Australian way'.
Australia, now coached by Darren Lehmann, lost a thrilling first Ashes test against England by 14 runs and start the second at Lord's on Thursday.
($1 = 1.0998 Australian dollars) (Writing by Mitch Phillips in London, editing by Pritha Sarkar)