THE DISPUTE between Andrew Lovett and St Kilda is set to continue after the two parties failed to reach a resolution at a mediation session on Friday.

Lovett and Saints officials met for nine hours at Etihad Stadium in a bid to resolve their differences, which arose after the 27-year-old was sacked by the club one day after being charged with rape, following an incident in Port Melbourne on Christmas Eve.

The mediation, instigated by St Kilda and co-ordinated by the AFL, went ahead after the Saints refused to attend a grievance tribunal hearing last week.

They argued they weren't obliged to attend as Lovett was no longer recognised as an AFL player, and offered mediation as an alternative resolution process.

Lovett was reported to be seeking full compensation of his three-year contract, which was set to commence this season.

St Kilda CEO Michael Nettlefold said in a statement released on Friday night that the club had tried its best to reach a satisfactory conclusion to the dispute.

"However, the claim made by Andrew Lovett’s representatives was not something the club could reasonably agree to," he said.

"As our members, sponsors and other stakeholders would expect, we have obtained legal advice from independent expert employment law barristers who advised us that the club was legally entitled to terminate Andrew Lovett’s employment contract."

Nettlefold said the club maintained that Lovett had brought the club into disrepute with his actions and therefore, it was entitled to sack the player under the terms of the AFL collective bargaining agreement.

"Further, the club formed the view that Andrew had also engaged in misconduct which is a ground for termination under his contract of employment," he said.

"The main reasons the club believes that its decision to terminate Lovett’s employment on these grounds is justified, is because of his behaviour on December 23 and 24, 2009 and his failure to obey specific directions to contact club officials in this type of situation."

Nettlefold said St Kilda remained open to discussions with Lovett and his representatives to reach a "reasonable settlement".

The former Essendon rookie made his way to St Kilda via the AFL's trade week last year after playing 88 games at Windy Hill.

The League's general manager of football operations, Adrian Anderson, said both Lovett and St Kilda were free to refer the matter back to the grievance tribunal for resolution.