Yesterday morning George Graham was looking forward to leading Tottenham into an FA Cup semi-final against Arsenal in three weeks' time. By the evening he was preparing for a court battle after being sacked during an extraordinary day at White Hart Lane.

Graham's dismissal, which he has vowed to fight with legal action, came after a 15-minute meeting with the club's executive vice-chairman David Buchler yesterday lunchtime and follows three days of tension at the club.

Buchler said the Scot had been fired for "breach of contract" after making public comments about Tottenham's financial position which led him to question whether Graham "had the real interests of the club at heart".

Graham had said at a press conference on Thursday he had learned, in a meeting with Enic the previous day, that he would be given only "limited funds" for transfers. Buchlerr was livid to see his remark from a private meeting in the newspapers and his anger was exacerbated by the fact they came on the day he met Sol Campbell and his agent in an attempt to convince the captain to remain at the club beyond the summer.

Graham was called to a meeting yesterday with Buchler and the club's financial director John Sedgwick to explain his comments and was said by Buchler to have given what amounted to "a two-fingered salute".

"He was defiant, he was aggressive," Buchler said. "He used inappropriate words in the course of the conversation. It was a most uncomfortable conversation and I hadn't anticipated it. It was clear to me that we not only had a situation where he had broken his contract but I question the motives behind being put in the situation I was. As a result of that George Graham was dismissed."

Buchler, who has put the club's director of football David Pleat in temporary charge, hinted Graham had deliberately provoked him into the sacking. "I was not expecting to come out of the meeting having to dismiss somebody," he said. "His reaction probably said it all. When he was dismissed he shrugged his shoulders, said `So be it' and walked out."

Buchler insisted he had hoped the Scot, who was appointed in October 1998, would see out his contract, which runs to the end of next season.

But Graham, who said he was "shocked and extremely upset" at the "bizarre and inexplicable decision", claimed his future had already been decided and that his remarks to the press had been used as an excuse to sack him.

"Mr Graham was stunned and could not believe that such a flimsy excuse was being given for his dismissal," his lawyers said. "Mr Graham believes that Enic always intended to sack him when they came in and for them to say that it was him who had `his own agenda' was untrue and a complete reversal of the facts."

Graham added: "Every club has a limited budget and to say that I have broken some confidence in revealing this `secret' just demonstrates how little the new owners understand about the game."

According to sources, Wednesday's five-hour meeting, which was attended by Buchler, Graham and Pleat, became quite heated and Buchler became increasingly annoyed at Graham's attitude. Enic say he did not appear interested in their vision for the club.

Sources said Buchler detailed a three year and a five-year plan for the club. Money for new players, new contracts for existing players and a particular player Spurs have put in a bid for were also discussed. But Graham apparently only spoke about money and how much would be available to him for new players. According to one Enic source, Buchler told Graham: "You have already spent £40 million (sterling) and all you've got to show for it is one away win this season."

While Graham began thinking of court the fans started thinking of who will take over. Glenn Hoddle, Terry Venables and Peter Taylor - three former Spurs players - are among the bookmakers' favourites, as is former Chelsea manager Gianluca Vialli.

Buchler said he had not spoken with any managers or their agents and promised to scour Europe to find Graham's successor. Many expect he will look no further than Southampton, where Hoddle is in charge. Hoddle's agent Dennis Roach refused to rule out a return for the former darling of White Hart Lane. Hoddle recently signed a new contract to keep him at Southampton until the summer of 2002.