FORMER Gillingham captain Paul Smith faces the New Year unemployed after accusing the club of leaving him high and dry without a contract.

However, Gills chairman Paul Scally says that he was unaware until three weeks ago that Smith had cancelled his contract with Walsall, from whom he was on loan.

Gills manager Ronnie Jepson’s announcement that the midfielder had made himself unavailable for the Christmas games drew a retort from the record four-times Player of the Year who recently returned to Priestfield on loan from Walsall.

Smith says he cancelled the remaining 18 months of his Walsall contract on the understanding that Gillingham would honour the terms from January 1.

Since returning to the club in October, his wages have been paid by the Saddlers. Now, the 34-year-old father of two young daughters claims he has been left without a contract and income from December 31.

In a statement issued through his agent Andrew Mills, Smith explained: "It has recently been reported that I made myself unavailable for team selection over the Christmas period."

He said this was the unfortunate result of a contract dispute following his return to Gillingham from Walsall.

"One of the conditions, in order for Walsall to allow me to return to Gillingham on loan while continuing to pay my wages, was that I cancelled the remaining 18 months of my contract with them, leaving me effectively out of work from January," he said.

He claimed that following assurances that Gillingham would take over his contract from January 1 and honour its terms, he signed both the loan and Walsall contract cancellation forms.

He alleged: "Since returning for the Blackpool game, I have been given several assurances that the permanent contract was imminent.

"During recent meetings, these conversations have been called into doubt but I am clear about the terms of my return.

"To be told firstly that the chairman was not aware I had cancelled my Walsall contract and secondly that due to banking requirements the club could not commit any further finances to playing staff, is extremely disappointing.

"I now find myself with no contract or income from December 31, which not only has serious ramifications for me on a personal level, but also my family. I feel badly let down by a club that has been close to my heart for the last eight years.

"It looks as though I’ve played my last game in a Gillingham shirt so I would like to thank the fans who made me so welcome on my return."

Gills chairman Paul Scally said that he had been in the dark over the player’s decision to part company with Walsall.

He said: "I didn’t know until three weeks ago that he’d cancelled his Walsall contract and as far as I was concerned, it was a loan deal with a view to extending it on January 1 and that was the situation at the time of signing.

"At no time did I know, realise or suggest that he had cancelled his contract with Walsall."

With Jepson taking over as manager and the club tied to a strict player budget, Mr Scally conceded that the club were in no position to offer Smith a new deal.

He said: "With the financial situation and the change in management it was decided that we couldn’t offer him a new contract. It just wasn't possible."