(Corrects paragraph three to show West Ham has already been fined, so replaces "later fined" with "has already fined")

LONDON (Reuters) - Sheffield United said on Wednesday it was in arbitration over a dispute with Premier League side West Ham United.

The dispute revolves around Sheffield United's relegation from the top flight division last season after West Ham beat champions Manchester United in their last game to stay up and send Sheffield United down.

The Football Association had already fined West Ham 5.5 million pounds for irregularities over the purchases of Carlos Tevez, who scored seven goals in West Ham's last 10 games of that season, and Javier Mascherano.

However West Ham escaped a points deduction and Sheffield United failed in two previous appeals to force the Premier League to relegate West Ham.

Sheffield United said the arbitration procedure was at an early stage.

(reporting by Marc Jones; Editing by Paul Bolding)