Mr Reynolds became chairman of Darlington in 1999

Mr Reynolds called in administrators in December amid club debts of about �1m and to avert a winding-up order from the Inland Revenue.

Further details about the club's financial plight are expected to be released by administrators Wilson Field within days.

In a statement Mr Reynolds said: "I have today met with the joint administrators and having assisted them over the Christmas and New Year period, have decided that, in the best interests of the club and its supporters, I should take a back seat and allow the administrators to fulfill their primary objective, which is to return the club to profitability and future success.

"Accordingly I have today resigned as a director.

"I intend to continue to offer my support to the administrators in respect of any matters which may arise in the future.

"I would like to take the opportunity to wish the club well and I firmly believe that the new stadium will be an asset for the community for many years to come."

Joint administrator Dave Field said: "In terms of running the company, Mr Reynolds is no longer involved.

"Although he was a director, his role since December has been to assist the administrators.

At the moment we have had less than half a dozen people come to us and express any kind of interest Dave Field, joint administrator

"He has personal items he wants to sort out, but after that he will be away from the premises."

Meanwhile, the club's Supporters Trust - part of a consortium interested in bidding for the Quakers - is holding a meeting on Tuesday to try and work out how they can raise �250,000.

They need to raise the money by March to secure the Third Division club's future.

Mr Field said less than six interested parties had come forward to bail out the troubled club.

Mr Reynolds has blamed Darlington Borough Council in part for the crisis.

Unsecured debts

He said council bosses had refused to allow the recently-built �25m Reynolds Arena to be used for alternative events, such as car boot sales and concerts.

Mr Field added: "We hope to know soon, exactly who is in a position to bid for the club.

"At the moment we have had less than half a dozen people come to us and express any kind of interest.

"It was a loss-making company when we were brought in and gate receipts are still not brilliant.

"We are talking about �1m in unsecured debts, which involve items related to the construction of the stadium, as well as others to do with the day-to-day running of the business.

"Up until now, only one individual has offered to waive debts in an effort to help the club survive."

Mr Reynolds joined Darlington as chairman in 1999, paying off the club's then �5.2m debts.