Physiotherapist Lisa Brown, 41, is set to face Councillor Sean Woodward, leader of Fareham Borough Council, in the three-day tribunal.

Claimant Miss Brown owns a third share of LBhealthcare, the trading name of Ferneham Health Ltd, along with Cllr Woodward and another businessman, who is also named as a respondent.

The claim is not related to Cllr Woodward's council work.

Miss Brown, of Hill Head, was the driving force behind the £1m health centre in Yew Tree Drive, Whiteley, which is owned by LBhealthcare and was opened to great fanfare in early 2005.

She went into business last August with Cllr Woodward and the third partner, all with equal shares in Ferneham Health Ltd.

A source close to Miss Brown said: 'It's really sad – the whole thing is shocking.'

Miss Brown has been living with her female partner for 19 years but up until now had not been openly gay.

The source added that Miss Brown knew that her sexual orientation would come into the public domain as a result of her claim to the employment tribunal.

The source added: 'But she has come to terms with that now – she's not going to let this go.'

She is claiming she was unfairly dismissed after she refused to let Cllr Woodward and his business partner buy her out of the company last October, and that she was subsequently sacked by the pair.

She is also claiming for loss of earnings since then, as she alleges she is owed wages by the company.

Cllr Woodward said: 'We are vigorously defending all of the allegations against us.'

The tribunal will start on Monday at Duke's Keep in Southampton.