CLIVE Palmer has vowed to sue Football Federation Australia for $20 million unless he is restored with Gold Coast United's A-League licence.

Queensland's richest man said FFA would be given the option of re-instating him as United's licence holder or being hit with a damages claim.

''We've decided to sue the FFA for damages of about $20 million,'' Palmer said.

''We're first going write them a letter, setting all this out so they've got proper notice of it and suggest that a good way out of it might be for them to re-instate our licence, effective from the end of this season.

''They can have it that I'm banned from being an office holder of the club I don't mind.

''We'll at least give them the opportunity. It would guarantee the A-League still has 10 teams, it will guarantee that it still remains here on the Gold Coast and that the (Gold Coast) community still gets access to it.

''The question is if they don't agree with that, is who's bringing the game into disrepute and who really cares about the game of football?

''We have complied we believe with all the regulations.''

We've decided to sue the FFA for damages of about $20 million ... a good way out of it might be for them to re-instate our licence

Palmer is adamant that comments he made that led to the breaches should not have resulted in United's licence being terminated because he made them after stepping down as the club's chairman during the 2009-10 season.

''I resigned as a director of the club they (FFA) were informed of that,'' he said.

''The law is directors are not responsible for the statements that their shareholders make.

''To revoke GCU's licence for something a shareholder said is totally illegal.''

Palmer's comments about football and FFA contributed to his downfall in in failed legal attempt on March 2 to have an injunction slapped the termination.

''We didn't do the right thing in the application and explain that those comments weren't on behalf of the club and why they weren't, so the judge had no alternative but to knock back the injunction,'' he admitted.

Palmer claimed $20 million would the ''estimated value'' of United following FFA's planned re-negotiation of A-League broadcast rights..

''The fact that we've invested $18 million is irrelevant. It's what the club's worth, which would have been $20 million based on their (FFA's) projections for profit and what was going to happen in the future.''

Palmer's new Football Australia organisation will hold a commission of inquiry to gather submissions on how to improve the code's administration and development.

It will be headed by ex-Football Federation South Australia president Gary Collis.

Meanwhile, Canberra is in the mix to have a team in the A-League and as soon as next season, according to FFA chairman Frank Lowy.

Speaking on Fox Sports, Lowy said Canberra's bid met a lot of the requirements for inclusion in the A-League as did western Sydney.

"Without being too definite, I think I can tell you that we actually have three opportunities now," Lowy said.

"Discussion with the new Gold Coast people, Canberra is still interested, and there's a real opportunity in the western suburbs (of Sydney).

"The question with western suburbs is can we field a team this October?

"I think we will be able to field a team (eventually), but the big question is whether it's this October ..."

Lowy seemed less confident the Gold Coast, whose current franchise will drop out of the competition at the conclusion of this season, would field a team in 2012/13.

- with AAP

Originally published as Palmer vows to sue FFA