Officials at Soho Square have completely dismissed their demand for a legal review of their pre-season penalty after being asked by Leeds to refer the case to the High Court last week.
The FA received communication from Elland Road on Friday, but the governing body responded quickly today by confirming that they would not initiate an independent investigation into the unprecedented punishment.
United have in turn announced that the FA's unyielding stance will now force them to begin arbitration proceedings against the governing body.
A statement from Leeds read: "If they refuse this request, we will commence independent arbitration proceedings, in accordance with FA regulations. We shall continue to pursue this matter step by step."