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Cahill, pictured left, has issued a statement through his representatives saying that he feels he is being forced out of the club by chairman Theo Paphitis.
Speaking to the London Evening Standard, the Australian international accused the Millwall chairman of attempting to cash-in on the player before he is allowed to leave the club on a Bosman next summer and fears that if he tries to stay at The Den he will be sidelined by the club.
Cahill rejected a move to Palace last week after a row over terms and has missed Millwall's pre-season tour to Canada. He is now concerned that he will lose his place in The Lions' starting line-up to new signing Jody Morris.
The player then went on to make a passionate plea to the Lions faithful.
"I would like the Millwall fans to know that I've never asked to leave the club and with the prospect of UEFA Cup football this season there are exciting times ahead," said Cahill.
"I also want to make it clear that I've never been offered or turned down a new contract at Millwall.
"Having given the club eight years' service I do not want to be forced to leave if the situation is not right for me or my family."
Within minutes of the article being published, Millwall hit back at the player, claiming that the statement was poppycock and issued the following on the club's official website:"Tim was given permission by Millwall to talk to Crystal Palarse, newly promoted to the Premiership, after both clubs had agreed terms. The two parties met, but talks subsequently stalled with the revelation that the agent was demanding a £125,000 fee.
"Despite the claim that the player 'never asked to leave the club', the facts are that Tim asked both Dennis Wise, the current manager, and his predecessor Mark McGhee for a move.
"At no point have Tim's agents given the slightest of indications that their client would be prepared to sit down with Millwall and talk about a new contract. Any suggestion that he might be 'frozen out' of the first team as a consequence would be preposterous."
So who do we believe? The club are adamant that they are in the right, while the player - who went on record as saying he'd like to play Premiership football with The Lions after the FA Cup Final - has indicated that he would sign a new contract if offered.
For their part, the club have left the door open for Cahill and his representatives.
"If the circumstances have now changed and Tim Cahill is ready and willing to sit down and talk realistically about a contract extension," offered the club. "Then we would be delighted to do so."
But it remains to be seen whether or not Cahill would be happy to return to the fold after such a public airing of the pair's dirty laundry. What is certain is that he will not join up with his teammates for the rest of the club's Canadian tour.