Mickey Arthur says Michael Clarke called Shane Watson a 'cancer'

Mickey Arthur has claimed Michael Clarke called Shane Watson a 'cancer' on the Australian cricket team and Arthur has requested up to $4 million in compensation or to be reinstated as coach, according to explosive documents obtained by 7News.

The documents lifted the lid on a team allegedly beset with infighting and a coach who says he was racially discriminated against because he’s South African.

The documents claim "there was major tension between Michael Clarke and Shane Watson", with the pair clashing over the need for discipline.

Clarke allegedly described the role of Watson and his faction on the side as a "cancer", with Arthur suggesting he was the "meat in the sandwich".

At a welcome function at the Australian High Commission in London on Wednesday morning (AEST) Michael Clarke opted for a jovial roast of his teammates in which he described Shane Watson as "Mr Guitar Hero", instead of delivering a formal speech about the team.

"Everytime you are walking down the corridors of your room he’s always on his guitar. One thing you don’t know about Shane is one day he is a cricketer but tomorrow he could be in The Rolling Stones," Clarke told the room full of Aussie ex-pats.

Watson later told News Ltd he came out of the roast better than some of his other teammates.

"We had no idea he was going to do that," Watson said.

"It could have been worse for me, I got off lightly I reckon."

Arthur, who was earning $400,000 a year and up to $200,000 in bonuses, was sacked as coach last month and was replaced by Darren Lehmann.

On Wednesday morning Arthur expressed his dismay that the information was leaked to the public.

"I am extremely upset and disappointed that confidential documents appear to have been given by others to the media," Arthur said in a statement.

"The matters raised in my application to the FWC [Fair Work Commission] concerning issues within the Australian cricket team are very sensitive, which is why I was at pains to keep them confidential, especially at this time.

"I have kept them confidential, unfortunately others have now made them public.

"I want to stress how important to me the members of the team were, and still remain to me. The welfare of the Australian cricket team is utmost to me."

Arthur was contracted until June 2015 and wanted three years beyond that, estimating his losses to be as much as $4 million.

"We're disappointed that it's come to this position,” Cricket Australia lawyer Dean Kino told 7News.

"But Cricket Australia's confident in its position on this matter. And I'm sure it'll get resolved in the appropriate fashion."

David Warner’s bar room brawl with England’s Joe Root was the final straw for Cricket Australia, and Mickey Arthur claims it was Shane Watson who tipped him off.

Earlier this week Warner revealed he was "gutted" by his role in Arthur’s sacking.

"After that incident I went to my room as I was shattered for two weeks," Warner said.

"I still feel the guilt of what happened."

Arthur has also shed more light on the Homework-gate saga, claiming Cricket Australia didn't support him when he suspended players in India for failing to follow directives.

Arthur had asked them to complete feedback because of backchat, turning up late with inappropriate equipment or garments, and poor skin folds.

Arthur also claims he was discriminated against because he was South African and didn't understand the "Australian way".

The revelations come just days before the second Ashes Test against England, which begins on Thursday.