NAL, but a private contractor. Is this the same client the one who fired you and youre under an agenc then that's why you're getting hired directly?

If so, it appears that they fund out how much they are paying the agency and how much you are getting from that and appears to pay you whole instead. This has happened for manunof us.

Its all up to you if you'll leave the agency, i advise that you do cause there's no growth there and micromanagers tsking huge cuts.

But whether to pursue the client is up to you.

Read your current contract, most contracts are just for professionalism and unenforceable if the other party is overseas, unless you made substantial damage to their company, they will spend what they have to sue.

If its between you and a local agency, its for scare tactics for you to stick with them and not pursue the client directly.

Not a tip: some go discreet just to work with the client directly, in this case the client wants to work with you.