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Sinnott has told the press he has not resigned after his club, Farsley Celtic, said he had quit.
Farsley chairman Andrew Firbank announced the club had agreed a compensation package with League One's Port Vale for the 42-year-old.
Sinnott later told BBC Leeds: "At no time have I either verbally or in writing tendered my resignation to Farsley". Sinnott also added "I'm flattered by the interest shown in myself by Port Vale,"
Farsley Celtic have released the following press release on their official website: http://farsley.bpweb.net/lee_to_port_vale.html
Over the last couple of days, Port Vale Football Club have once again expressed an interest in speaking with Lee Sinnott concerning their vacant managerial position. At the same time, the boards of the two clubs have been in active discussion over a compensation package and this has now been agreed to the satisfaction of all parties.
It is therefore with profound sadness that I must advise our supporters of the resignation of Lee Sinnott as first team manager of Farsley Celtic Football Club with immediate effect.
I would like to take this opportunity to thank Lee for the work and commitment he has shown to the club over the last four and a half years. At the time of his initial appointment, our club were playing in the Unibond League Midland Division and during his time in charge we have sampled unprecedented success, with three promotions in four seasons, success in the FA Cup and West Riding Cup. To celebrate our centenary season in the highest echelons of non league football is a fitting reminder of the impact Lee has had on this club.
Such success inevitably is noticed. Lee is an ambitious manager and we, as a board, fully recognise that it would be impossible to stand in the way of him furthering his career. We would like to sincerely thank Lee for all his work and we wish him and his family the very best of luck for the future.
Sinnott, born in Aldridge joined Walsall as an apprentice in March 1982 and made his debut, aged just 16. He went on to make 47 appearances for The Saddlers, before Graham Taylor took him to Watford in September 1983 for £100,000.