According to reports on the BBC Online an application by the club to go into voluntary administration will be heard at a court in Leeds next week.
‘We are going into voluntary administration in order to give us breathing space to take the club forward,’ said chairman Malcolm Reynolds.
He confirmed that the administrators would not be looking to sell the club, and also sought to reassure players.
Reynolds said key to taking the club forward was relocating from its existing ground, the McCain Stadium, to a new stadium on the outskirts of town.
‘To relocate from our existing ground takes time and we need the breathing space to get things moving and make sure that we continue to the end of the season,’ Reynolds said.
In 2001 the club nearly went to the wall, before a last-ditch rescue was made by Reynolds.
The club, which was formed in 1879, currently lies fourth in the conference table, with promotion to the football league at the end of the season a distinct possibility.
It joins a growing list of clubs from the First Division down that have struggled to survive under hefty wage bills, falling match crowds and the fallout from the collapse of ITV Digital.
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