Responding to the story Mohamed Al Fayed rejected the claims.
"The Guardian story is complete and utter rubbish," he told fulhamfc.com
"I met with Chris last night here at Harrods and we are fully on course for next season's campaign with him as Manager of the Club. We discussed potential acquisitions and our ambitions for a better finish and I believe Chris can and will achieve this.
"Spurious stories in the media will do nothing to deter my aims for this football club or my wholehearted 100% support of Chris Coleman.
"Chris is and will remain the Club Manager - anyone else who speculates on his future or writes spurious stories regarding his future will be subject to legal scrutiny.
"I have instructed my legal representatives to take action against Guardian Newspapers. I never expected to see such rubbish printed in The Guardian - Stuart James is welcome to join my staff as a doorman as he clearly is not a very good reporter!"