A local businessman will gain a more significant stake in Coventry City and the deal will involve clearing all of the club's current debts, it has been announced.
The company that owns the football club has agreed to sell a significant stake in the club to Doug King, subject to EFL approval.
It is thought that Mr King will buy an 85% share in the club, which has been in financial difficulty.
The club has also submitted an equity bid to secure the future of their home stadium.
'I know that Doug has long been an admirer of the Sky Blues'
Joy Seppala, Chief Executive at SISU Capital Ltd, said: "This is a fantastic moment for Coventry City FC and the city.
"I know that Doug has long been an admirer of the Sky Blues and will be a powerful steward of the Club moving forward.
"He shares our ambition to deliver the most successful football club possible, to climb the football pyramid, and invest both on and off the field.
"I am looking forward to a bright new future working with Doug, and all our partners across the city.
"The sale of the CBS Arena does provide short term uncertainty and with Doug on board we intend to set out a robust bid for the stadium which, if successful, will provide a platform for long-term success."
In a statement, the prospective main stakeholder said: "It is no secret that Coventry City FC has faced challenges in recent years.
"Working together we want to deliver a new start, beginning with securing our home in Coventry.
"We know fans, and others across the region, want long-term security and the guarantee of playing football in our city. This is critical to our ambition."
"We have made it a priority – and one of our first acts as majority owners – to submit a bid to acquire the CBS Arena.
"We are keen to meet with Coventry City Council representatives and others as soon as possible to set out our vision – which includes the regeneration of the area."