Roy Keane and Manchester United are to be sued by Manchester City and their midfielder Alfie Haaland after Keane said in his autobiography that he had deliberately injured the Norwegian international.

Legal proceedings began last night, overshadowing the start of the Premiership season this weekend.

The action is being taken after Keane's disclosure in his book, released later this month, that he had intentionally hurt Haaland during a league match between the local rivals at Old Trafford in April 2001.

Keane's foul earned him a red card. In his autobiography, he states it was a premeditated act of vengeance for a perceived slight three-and-a-half years earlier.

On that occasion, Keane fouled Haaland, then a Leeds player, but fell and suffered an injury that kept him out of the game for a year. Keane alleged Haaland accused him of feigning the injury.

Haaland is alleging that he suffered a serious knee injury in the Old Trafford tackle and might have to retire from the game at the age of 29.

He is claiming damages for loss of income and loss of status. City want compensation for the loss of an employee and the lowering of his possible transfer value. Haaland has played little football since the injury.

In a statement, Manchester City said: "Following discussions between the club, Alfie and his legal advisers it has been agreed to instruct solicitors regarding the circumstances surrounding Roy Keane's tackle on April 21 2001.

"This action has been taken with a view to commencing legal proceedings against Roy Keane and his employers Manchester United."

Peter Kenyon, the United chief executive, said he could not comment until the club's lawyers had discussed the matter.

Earlier this week, however, the United manager Alex Ferguson said he did not think Keane had any sort of a case to answer.

The FA is considering disciplinary action against Keane for his remarks.

Meanwhile, Liverpool's hopes of signing Damien Duff, already on the wane after their initial inquiry was rebuffed last month, appeared to have foundered for good last night.

Blackburn Rovers have confirmed the Irish international is on the verge of agreeing a new long-term deal at Ewood Park.

While Gerard Houllier was parading a quartet of summer signings at Liverpool's training complex, the one that got away was the centre of attention some 40 miles up the road.

After tentative inquiries from Anfield and Old Trafford, Duff is due to sign a two-year extension at Blackburn, keeping him at the club until 2006 earning £30,000 a week.

"We are getting very close to an agreement with Damien," said the Rovers manager Graeme Souness. "We have made no secret of our desire to keep him and we have basically offered him more money and a longer-term deal to do so."

A tribunal in England has ordered Sunderland to pay £225,000 rising to £625,000 with appearances to Tranmere Rovers for 19-year-old Irishman Seán Thornton.

Peter Reid had originally offered £100,000 rising to £225,000 for the youth international.

Reid yesterday underlined his determination to recruit a top-class striker by keeping the number nine shirt vacant.

The shirt, worn in recent years by Republic of Ireland legend Niall Quinn, is yet to be handed out as Reid follows up his interest in Rangers duo Michael Mols and Tore Andre Flo.

Player-coach Quinn will wear number 29 this season as he plays a reduced role on the pitch.

Irish midfielder Thomas Butler has been handed the number 14 shirt worn last season by £3.5 million signing Nicolas Medina, who will wear 23.

Kevin Kilbane, who landed himself in hot water by aiming a v-sign at disgruntled fans during a pre-season game, retains the number 11.

West Brom manager Gary Megson has been strongly linked with a move for Millwall striker Richard Sadlier, with the Republic of Ireland player rated in the £2.5 million bracket by the London side.

John O'Shea, meanwhile, has been withdrawn from next week's under-21 international against Finland by his club. Don Givens agreed to allow O'Shea to stay in England after being contacted by Alex Ferguson, and Bohemians defender Jason McGuinness has now been called into the squad.

Newcastle manager Bobby Robson has said his players are fatigued after their Champions League qualifier, but is happy to let goalkeeper Shay Given join up with the Republic of Ireland squad for Wednesday's friendly against Finland.

"Shay will go. But that's all right because he's standing in the goal and he's not going to be running around the field getting kicked all over the place," said Robson.