ITV News Central has been told that secret talks between Coventry City and the Ricoh Arena to try to keep the club in the city have failed.
The two sides met yesterday.
It is understood that the talks centred around a debt deal being offered to the stadium.
If Ricoh Arena bosses accept the offer, it would mean the following:
The Ricoh Arena gets paid some of what it is owed (approximately £600,000 out of £1.3m)
Coventry take a significant step towards coming out of administration, which they need to do to start buying players again
Coventry avoid a points deduction from the Football League
Coventry's finances are not inspected in more detail
If the deal is rejected, the opposite happens:
The Ricoh Arena does not get paid any of what it is owed
Coventry will spend longer in administration, unable to buy players
Coventry are deducted points by the Football League
Coventry's finances are inspected in more detail
The two sides will meet again formally to discuss the debt deal, on July 30, at 11am.
In the meantime, the Sky Blues have said today they are pressing ahead with plans to build a new stadium within six-miles of Coventry city-centre.