The Hammers approached Chelsea yesterday to secure the services of Clarke and were told they could not have him nor could they speak to him.
West Ham unveiled Gianfranco Zola as their new manager yesterday.
It's believed Clarke was furious at Chelsea's response and prompty tended his resignation this morning.
However Chelsea have refused to accept it and told Clarke he cannot leave and must not speak to West Ham.
The tug of war is expected to rage for most of today with Chelsea eventually getting compenastion for the coach who has a 15-year association with Chelsea first as a player and then coach.