Vaughan added: "I offered Mr Rush and Mr Aizlewood (assistant) a financial settlement so they could resign from the club with dignity and we would agree a joint press statement regarding their departure.
"Mr Aizlewood verbally agreed to this course of action. However, after they discussed the offer with their solicitor, who also acts as their agent, they decided to withdraw the verbal agreement, which was disappointing."
Mr Vaughan said that he had not dismissed Rush due to the financial implications which that would have upon the club.
He added: "If the affair isn't concluded by the weekend, then as employees of the club they may well still be in charge of the team for the home game on Saturday against Southend United."