Neuchatel fear club could damage town's image
Neuchatel Xamax has also dismissed the administrative staff, parted company with all its sponsors and last week fired Brazilian goalkeeper Rodrigo Galatto after a bad performance on his debut.
The municipal government said on Thursday it had invited club directors, including Chagev, to talks next week.
"During this meeting, the sports director will explain the considerable damage which both the town and canton of Neuchatel - where the club is an ambassador - are suffering through the use of the name Neuchatel," said the municipal government in a statement.
"We will discuss the indispensable conditions which should be followed in the usage of his name."
Swiss media have reported events at the club on an almost daily basis.
On Wednesday, Spaniard Joaquin Caparros, who left Athletic Bilbao at the end of last season, was named as the club's latest coach.
Neuchatel, who narrowly avoided relegation last season, have lost their first two games of the season without scoring a goal, leaving them bottom of the Swiss Super League.
Chagaev (pictured, left) has said that his aim is to lead the team into the Champions League.