A TROUBLED free school says it has terminated the contract of its headteacher on performance grounds.

However, Peter Cantley insists he has not accepted the move and legally remains headteacher of Durham Free School (DFS).

The clash is the latest twist in an increasingly bitter argument between Mr Cantley, a former Department for Education (DfE) official, and DFS, which was recently rapped over its financial and governance arrangements.

Before Christmas, the school said Mr Cantley had “left” – but he subsequently denied this.

Yesterday (Thursday, January 8), DFS said it terminated Mr Cantley’s contract on the grounds of his performance with effect from Friday, December 5, and had followed due process.

However, Mr Cantley is challenging the termination. He believes it is only effective if he accepts it and he has not, therefore he remains DFS headteacher.

He said he had been off work sick since Wednesday, October 15, but, despite having now been declared fit to engage in a phased return, DFS’ chair of governors, John Denning, had declined to meet him to discuss this.

Further, Mr Cantley said the DfE and DFS governors had said he was doing a “good job”.

Both sides are taking legal advice and the case may end up before an employment tribunal.

The school opened in the former Durham Gilesgate Sports College premises, Durham, in September 2013.

It has been dogged by controversy, with its first term costing the taxpayer nearly £900,000 – more than £25,000 per pupil.

Before Christmas, the Education Funding Agency (EFA) found “significant weaknesses” at the school, stripped it of some powers and ordered a recovery action plan be drawn up.

Mr Cantley says he raised “serious concerns” over the school’s governance with the chair of governors some months ago, although the school says as far as the governors are aware he approached the DfE and the EFA after they had made clear their intention regarding his employment.

Earlier this week, shadow education secretary Tristram Hunt said a Labour government would close the school unless it could solve its problems.

Julian Eisner, formerly DFS’ deputy headteacher, is currently acting headteacher. Leaders plan to advertise for a new head this month.