DAGENHAM and Redbridge are embroiled in a dispute with Colchester United over compensation for defender Magnus Okuonghae, who this week completed his move to the Us as a free agent.

The 23-year-old centre-back had turned down an offer from the Daggers after his contract expired at the end of last season. And League One outfit Colchester have pounced, snapping him up on a two-year deal.

However, far from being a straightforward transfer, Dagenham will be entitled to compensation, as Okuonghae is under the age of 24. The case will go to a tribunal after it emerged the two clubs are miles apart on the valuation of the player, with a club source insisting United are offering 'a fraction' of his true worth.

“The offer we've received is only a fraction of what we wanted,” revealed a club spokesman. “We are a long, long way off in terms of valuation of the player.

“The fact is Okuonghae was going nowhere until he came to us. We've made him a success and we want a price that reflects that.”

Only last week Okuonghae told the Guardian that he was staying put, but he has since had a change of heart.

Recently-relegated Charlton Athletic, who will now play their football in League One, also made enquiries about the defender, but he has now plumped for Colchester.

The move follows hot on the heels of the departures of Ben Strevens, Sam Saunders and Danny Foster, who all signed for last season's League Two champions Brentford.

Those deals will come as a hammer blow to manager John Still, as all four played key roles in the Daggers' promotion bid last season, when they agonisingly missed out on a play-off place with a final-day defeat to Shrewsbury Town.

With midfielder Glenn Southam having also been shown the door, Still has been forced to rebuild what was becoming a promising team.

Arsenal graduate Abu Ogogo, 19, has been brought in on a two-year deal this week, while Conference South side Bishop's Stortford midfielder Danny Green penned a deal on Wednesday, after terms were agreed last month.

They have also signed striker Josh Scott from Hayes & Yeading, and remain confident of tying Solomon Taiwo up on a new contract, while striker Jon Nurse has agreed a one-year extension.

The club source insisted Still had contingency plans in place to deal with situations like the one he finds himself in.

“He (Still) has earmarked players in the past to cope with departures and it is the same case now,” he said.

Meanwhile, the club's first pre-season friendly will be against Ryman Division One North side Concord Rangers on July 11.