Herbert Smith has outlined plans for a launch in New York as it moves to overhaul its international strategy, with the launch one of four new office openings on the cards.

The UK top 10 firm has told staff it intends to open an office in New York focusing on international arbitration, investigations and cross-border disputes in the next 12 months. The new base is set to be staffed with a combination of lateral partner hires and relocations, including US-qualified lawyers; however the firm is not intending to carry out domestic commercial litigation.

In an internal note to staff, senior partner Jonathan Scott also outlined plans to open in Francophone Africa and Korea, as well as Germany, where the firm's plans emerged last month after a merger attempt with Gleiss Lutz and Stibbe failed, prompting the collapse of the three-way alliance.

The decision to re-open in New York comes after Herbert Smith pulled out of Manhattan in the 1990s and in response to significant demand from the firm's London-based litigation partners.

Managing partner David Willis said: "The strategy we've pursued in the US, which has worked reasonably well in certain ways, has been not to have our own practice in New York.

"We have some really good relationships with US firms and having examined the successes of our competitors going into New York we've noticed they have generally only managed to make a go of things in certain niche areas and have had a number of false starts. We do now think it is time for Herbert Smith to adopt a new approach and to open in New York- but in a very focussed way."

The plans for international expansion have been announced as it emerges that partners could see payment of their end of year drawings pushed back due to a delay in billings.

An internal note from Scott stated that the firm has fallen behind with its billings and was therefore delaying a decision on the size and timing of the December drawings. The firm's limited liability partnership council is set to review progress at the end of this week (9 December) before any cash distributions are made.

In the memo Scott said: "At a time of heightened economic uncertainty, it cannot make sense for the firm to allow this fundamental discipline to slip."

See tomorrow's (8 December)  Legal Week for a detailed analysis of Herbert Smith.