Councillors in Coventry will make a decision on whether Premiership rugby club Wasps' proposal to take over the Ricoh Arena operating company ACL in a £30million deal.
The council currently share the ownership of the stadium with the Alan Edward Higgs Charity and would retain 10 per cent if the deal goes ahead.
Current tenants, League One side Coventry City, only returned to the stadium in September following a 14-month absence.
If the councillors grant the request it would leave the Sky Blues in limbo, as they may once again be homeless.
Wasps currently play their home fixtures at Adams Park in High Wycombe, meaning it would be a sizeable relocation for the club.
A decision will be made in a meeting on Tuesday at 2pm.
The Football League has said it is "dismayed" over the continuing disagreement between the the owners of the Ricoh Arena and Coventry City's administrators that has left the club on the brink of liquidation.
Earlier today, the owners of the Ricoh Arena, Arena Coventry Limited (ACL), rejected proposals drawn up by the club's adminstator that would of brought the club out of administration.
Football League Chairman, Greg Clarke said: "Once again, it is a source of immense frustration to everyone involved that the two parties in this dispute have failed to reach any agreement. The Board is dismayed at the level of intransigence being shown."
The association insisted that it would continue its efforts to get the parties to enter "meaningful negotiations" so that Coventry City can return to Coventry "at the earliest opportunity".
Coventry City FC Ltd, the part of the club expected to go into liquidation, will see its share of the club transferred to Otium.
The Football League says the transfer to the club's preferred bidder will take place on the basis that the club accepts a 10 point deduction for the 2013/14 season.
The Football league has confirmed that Coventry City will be deducted 10 points for the next season.
More to follow.
Coventry City supporters group, the Sky Blue Trust, have said they are "appalled" at the latest turn of events which has put the club on the brink of liquidation.
The group also attacked the Football League for their perceived failure to support the supporters of the club.
Coventry City's former Premier League stars Darren Huckerby and George Boateng expressed their shock at news that the club is on the brink of liquidation:
Coventry City administrators said proposals by Ricoh Arena owners ACL that could lead to the club's liquidation "did not comply with the law":
Coventry City has said it "will hold urgent meetings with the Football League this afternoon to go through the next steps for the football club."
Coventry City have confirmed that Coventry City Football Club Ltd is likely to be liquidated:
Coventry City are heading towards liquidation after the owners of the Ricoh Arena, Arena Coventry Limited (ACL), rejected proposals that would of brought the club out of administration.
ACL rejected the chance to sign a Company Voluntary Agreement drawn up by the club's administrator.
If the agreement had been agreed, Coventry City owners Sisu would have paid a reduced rent fee of £590,000 instead of the full £1.3 million - allowing the club to exit administration.
The Football League could also impose a 15-point penalty reduction on the club, who begin their League One campaign tomorrow.
A meeting to decide the future of the club ended in 10 minutes this morning, according to local media.