HARRY KEWELL was last night at the centre of a £4m transfer storm as Leeds United chairman John McKenzie accused Liverpool's new signing of holding his club to ransom.

With Kewell's agent Bernie Mandic threatening to sue Leeds and Professor McKenzie for his outburst that was branded "absolute codswallop", Elland Road chiefs were furious to receive a mere £3m for the Australian.

Instead of being given £7m for Kewell, Leeds were forced to accept Liverpool's reduced offer of £5m - and then hand the player a £2m pay-off.

The Reds will use the money they saved on the fee to pay Kewell's £15m, five-year deal - much to McKenzie's disgust.

Mandic's chicanery provoked McKenzie, whose club have lost six top internationals in the last 12 months, into a blistering attack on 24-year-old Kewell and his representative.

McKenzie blasted: "I have no intention of entering a debate with those who seek to justify their own position in gaining large sums of money from Leeds United, but I am angry and frustrated at the outrageous situation that has developed over the last week.

"The reality is that on July 4, I agreed a deal of £7m with Liverpool Football Club, which Kewell and his agent refused to countenance.

"Instead, they made a condition of not doing a Bosman that we pay £2m to Kewell's representatives, and Liverpool Football Club then reduced the fee to £5m.

"What happened to the remaining £2m, only Liverpool or Harry Kewell could tell you.

"The Leeds PLC were therefore faced with the alternative of taking the net £3m (plus £2.5m in wages) to enable Peter Reid to strengthen the squad or getting next to nothing if, rather like Lee Bowyer, Kewell did a Bosman.

"Given Kewell's outburst on television and his indication he has been talking to Liverpool for six months, it would be impossible for him to play for Leeds ever again.

"Sadly, therefore, the plc felt it had no alternative but to accept the paltry sum.

"I am outraged that having threatened to walk away for nothing in 2004, they now seek to suggest that it is our fault that my plc board felt the need to settle for such a small sum."

Mandic hit back at McKenzie's accusations, however, and left the threat of legal action hanging over Leeds.

He said: "My legal people will wait for Leeds to continue along their path and once they dig themselves deeply into it, we will take the appropriate action.

"If Professor McKenzie wants to throw stones then he needs to remember the very documentation he signed as recently as late June.

"If he wants to make wild, outrageous statements then fair enough, and if he wants to create a mess around the pre-season of Leeds, fair enough.

"Agents on behalf of Leeds contacted Liverpool in January, and they contacted us to say they had authority from Leeds to sell the player and there was interest from other clubs.

"Until a club contacted us directly we would not deal with them. I have a letter which clearly states that Max Sport, the company I work for, is authorised to find a new club, authorised by Leeds.

"Harry loves Leeds but at the end of the day we were asked to move the player on by the club, and to suggest otherwise is a nonsense.

"People are forgetting one simple fact: many players have left clubs on Bosmans, and Harry could have pocketed the entire £5m or whatever the figure would have been at other clubs.

"This was not a money-driven decision by Harry Kewell. The fact Leeds are trying to turn it into that is a problem for Leeds. We've tried to make sure we left on good terms, but to be honest Leeds have not helped themselves."

Kewell insisted money was not a motivating factor in deciding to link up with his boyhood heroes.

Chelsea, who came in with a late £9m bid and offered 30 per cent more in terms of salary, were among a number of other interested clubs which included Arsenal, Manchester United, Barcelona and AC Milan.