Former Olympus Corp CEO Michael Woodford said on Friday he will sue the Japanese camera and medical equipment maker for unfair dismissal and has instructed lawyers to start legal action in Britain.

Woodford was fired in October by Olympus, which accused him of failing to adhere to the company's management style and Japanese cultural practices.

There are no grounds whatsoever for dismissal, Woodford told a small group of reporters in Tokyo.

The statements came after he said earlier he has ended his fight to replace the management of Olympus and to return to lead it.

Woodford blew the whistle on a $1.7 billion accounting fraud that rocked the company but failed to win over Japanese institutional shareholders including Olympus' main lenders, who are supporting a board that has been blamed for insufficient oversight.

(Reporting by Tim Kelly; Editing by Michael Watson)