Health chiefs are considering legal action over the sacking of Bradford hospitals' trust chairman John Ryan.

Mr Ryan, chairman of Bradford Teaching Hospitals NHS Trust, was removed on Tuesday by regulator Monitor over the flagship Trust's forecast £11.3 debt.

But the troubled Trust has already drafted in lawyers to see what action can be taken against the regulator - which used its powers for the first time in Bradford.

A Trust spokesman said: "The Trust is seeking legal advice about the process which led to the decision by Monitor to stand down Mr Ryan."

Bradford MPs Marsha Singh and Terry Rooney and Shipley MP Chris Leslie were today due to meet Monitor chairman Bill Moyes and were expected to call for Mr Ryan's reinstatement.

But speaking ahead of the meeting, Monitor said there was no possibility of reinstating the axed chairman.

A spokesman for Monitor said: "Monitor has appointed a new chairman and is expecting him to get on the job with leading the Trust."

Following the appointment of interim chairman Peter Garland, with immediate effect, the Trust must once more spell out its plans to the regulator on how it will avert the forecast £11.3 million deficit, in another recovery plan.

Monitor said the first recovery plan - which included shedding 230 jobs - did not go far enough and failed to address the underlying causes of the overspend.

A spokesman said: "It's something we would expect Peter Garland to look at. One of our concerns was the plan only went to the end of March and did not say anything about the position for 2006. We are looking for a stronger plan which takes a longer view as well, rather than just short-term measures.

"Part of Peter's role as chairman is to look at the existing plan but it's not our role as regulator to get into detail about what that plan should look like, although we would expect to see a stronger, credible plan which we have not seen yet."

Mr Garland has not been set a deadline by the regulator to draw up an alternative recovery plan.

Monitor dismissed Mr Ryan's claims that it failed to understand the arrangements in place for Foundation Trusts and that it was the board of governors, not the regulator, who could hire and fire the chairman.

A Monitor spokesman said: "Section 23 of the Health and Social Care Act, which established Foundation Trusts and our role as regulator, clearly states the power we have available to us which includes removing the chairman. The board of governors have to find a permanent chairman."

Monitor said the interim chairman would be in place for about six months: "Peter Garland will be in place until the actions are taken to get the Trust back to a financially sustainable position. The issue is not just about getting the deficit down by the end of the year but also beyond 2006."

l Health Secretary John Reid was urged today to take action over troubled Mid Yorkshire Hospitals NHS Trust, which runs Dewsbury Hospital after an investigation uncovered systemic management failings over a number of years.

It is the first time the health service watchdog has used its powers to recommend special measures and comes after the commission found the trust has experienced serious problems since its inception in April 2002.