AAP understands the players' union, Professional Footballers Australia (PFA), is pursuing FA for a seven-figure sum on behalf of the players.
The union is expected to argue the revenue share agreement between the governing body and national teams players is not being serviced properly.
The central issue is believed to surround FA's commercial deals and whether players are getting a fair share of FA revenues.
As part of the existing collective bargaining agreement (CBA), which was signed in 2023, Socceroos and Matildas players take a clip of FA's national team revenues.
Registration fees or sponsors for junior participation programs are strictly off limits to senior national team players.
But anything relating to the Socceroos and Matildas, such as ticketing, broadcast or sponsorship, makes its way back into players' pockets.
National teams contribute up to a half of FA's revenues, with players receiving an 18 to 20 per cent cut of all relevant commercial arrangements.
There are also mechanisms in the pay agreement that incentivise players and FA to work together and push for more, allowing both sides to share the spoils of stronger deals.
But the players feel they are not getting their fair share, with the PFA launching legal action in the NSW Supreme Court on their behalf.
The dispute is the latest high-profile legal action against FA, who have had to settle out of court with Macarthur FC over claims the club was misled by the governing body in the lead-up to its A-League entry in 2020.
FA also recently settled an unfair dismissal case with former chief football officer Ernie Merrick.
The legal dispute with players comes ahead of Socceroos matches in the Middle East during the November window, where tensions are expected to be heightened by the conflict in the region.
Tony Popovic is expected to name his squad later this week to travel to Doha to face Qatar before tackling Jordan in Amman amid a backdrop of increased security concerns.
The Matildas will host Colombia in a two-friendly series in Canberra and Geelong later this month.
And the ill-feeling between the players and the governing body comes in the lead-up to the expiry of the current CBA, which is due to lapse in September next year.
Talks are yet to commence over new terms, following an impasse between the PFA and the A-Leagues over a pay deal earlier this year.
The PFA declined to comment while FA did not respond to requests for comment.
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