The seven Chinese ad resellers whose contracts with Google have been terminated are threatening to take legal action against the search giant.
The companies are seeking compensation for the money they are set to lose when the contracts end next month.
The group of advertisers have also accused several Google China employees of corruption and have asked the company to investigate the matter, reports the state run China Daily.
Google had decided to terminate the contracts of seven ad resellers in China without giving any reason for the move. The fresh turmoil adds fuel to the Google-China conflict that previously threatened the company's future in the country.
A spokesperson for Google China has told China Daily that the company is not in the habit of discussing individual cases and added that "there are a variety of reasons why we choose to end relationships with certain partners".
However, the spokesperson also said that Google is looking to partner with other ad resellers who will provide better services to Chinese Google users.