The World Wrestling Entertainment has rejected a deal offered by the estate of dead wrestler Chris Benoit, setting the stage for a potentially nasty and protracted legal battle.

The WWE balked at paying $2 million to Benoit's two surviving children from a previous marriage as "recognition of their father's contributions to the company," said Cary Ichter, the Atlanta-based attorney, who represents Michael Benoit, the father of the dead wrestler.

Michael Benoit, overseeing his son's estate, has yet to sue the Connecticut-based WWE, but that appears to be just a formality.

Chris Benoit murdered his wife Nancy and Daniel, their 7-year-old son, before taking his own life at the family's Fayetteville home in late June.

A toxicology report showed Benoit had extremely elevated levels of testosterone in his body.

There is no evidence, however, the testosterone played any role in the tragedy, said Dr. Kris Sperry, Georgia's chief medical examiner.

Under the proposed settlement , the $2 million would have gone to the children of Chris Benoit's previous marriage to Martina Benoit of Edmonton, Canada.

In exchange, the Benoit estate would have renounced any future claims against the WWE.

Neither WWE attorney Jerry McDevitt nor Susan Zwaenepoel, the Edmonton-based attorney for Chris Benoit's children, David and Megan Benoit, returned calls seeking comment.

The WWE has adamantly insisted that it had absolutely nothing to do with the Benoit tragedy.

Michael Benoit, however, believes otherwise after producing medical experts in September who detailed the many concussions Chris Benoit suffered over the years while performing. Michael Benoit alleges the WWE knew of the head injuries, but failed to provide treatment to any of their performers or much-needed rest.

"Had the WWE taken the slightest interest in its wrestlers — before it became the object of the interest of district attorneys and Congress — there is little doubt that Chris Benoit and his family would still be with us today," Ichter said.

Ichter, in the meantime, continues to take aim at the WWE in another public forum as a member of the Georgia Athletic and Entertainment Commission.

Better known as the state boxing commission, the governing body regulates the state's boxing and mixed martial arts, as well as ticket brokers.

Professional wrestling also falls under the group's purview, but the WWE had been exempt thanks to a 2005 statute that excluded groups with total assets of more than $25 million.

Ichter hopes to close that loophole and make WWE wrestlers subject to drug testing and other regulations just like performers from other sports that compete in Georgia.

The Georgia Athletic and Entertainment Commission will discuss the matter when it next meets on Tuesday morning.