Bosses of Ludlow Town FC have revealed a deal is being finalised to sell the cash-strapped club to wipe its mounting £470,000 debts.

Directors are on the verge of agreeing a £450,000 land sale with the Plymouth Estate, which would see the SBS Stadium in Bromfield Road leased to the club for £1,000 a month until 2041.

Chairman Nick Holcombe told last night’s annual general meeting there were few other options available and the deal had the backing of players, members, the Football Foundation and creditors.

Mr Holcombe said: “Our creditors have so far been very understanding but obviously this can’t last forever. At this stage we are relatively optimistic a deal will be done, meaning the club can carry on and remain in business.

“It will mean the club, for the first time I know of, will be completely free from debt. I understand there’s quite a bit of determination to see the club continue.

“But it’ll have to be run on a much smaller scale and by volunteers and we really have to cut salaries and make everything pay for itself.”

Mr Holcombe urged residents to get behind the deal, which he hoped would be the turning point for the “community-focused” club.

Ludlow MP Philip Dunne and business leaders have already been approached about using their expertise to help the club survive.

Director Martin Curtis blamed the economic downturn, the smoking ban and rising utility bills for the club having got into a financial mess.

Plymouth Estate, run by the Earl of Plymouth who owns Oakly Park Estate in Ludlow, is expecting to make only a small return on its investment, the board said.