United feel the £1m offered by the world game's governing body is insufficient compensation for the damage done to one of their prize assets.
Toon Set To Fight FIFA
Chairman Freddy Shepherd is digging in his heels, and although FIFA say it is a "take it or leave it offer", Newcastle will not be dictated to and are willing to go to court to settle it.
NUFC: "We have noted Mr Blatter's comments but as this is an ongoing matter it would be inappropriate to comment further."
FIFA have a fund to compensate clubs whose players are injured on international duty.
FIFA president Sepp Blatter: "Newcastle have come saying they have to replace him with another player, that this is not fair. We have made a last offer, and if someone has responsibility then it's the FA towards the player.
"The transfer regulations say players put at the disposal of the national team should be insured by their club. The competition regulations of the World Cup say the national associations must make sure the players are correctly insured. We have also set up a special fund for injuries to players for all 32 participants of the competition with a total of 15 million Swiss francs (£7m) available for everybody.
"If you look who is asking for money [from the fund] then something is wrong because it is from the richest league in the world."