Darlington Football Club's stadium was sold to the consortium

Former chairman George Reynolds called in administrators just before Christmas with club debts of about �1m.

It was feared demands by creditors, which include Mr Reynolds, would see the club fold.

But creditors have agreed to accept less than 1p for every pound they are owed, meaning the club can stay in the Football League.

The Sterling Consortium will take control of Darlington Football Club Limited, after the deal was struck on Tuesday.

It is understood the deal also includes the withdrawal of bankruptcy proceedings against Mr Reynolds, brought by the consortium, over debts surrounding the construction of the club's multi-million pound stadium.

At Tuesday's meeting, 88% of creditors agreed to accept a payment of less than 1p for every pound they are owed.

Football League

Administrator David Field says once the Football League approves the deal, he expects the club to be officially transferred to the ownership of the Sterling Consortium by the end of the week.

He said: "It will go in with a completely clean slate.

"As things stand at the moment, the actual legal transfer of ownership will take place on 28 May.

"As from that date Darlington Football Club Limited will own the assets, the players' contracts and everything else they need to run a football club.

"Everything, that is, other than the Football League's share, about which they will have to negotiate separately with them.

The club's future appeared bleak after a creditors' meeting ended in adjournment on 19 May, with a company voluntary arrangement (CVA) proposed by the Sterling Consortium expected to rejected.

Mr Reynolds, who is the club's largest shareholder, was unhappy with a �150,000 offer from the consortium.

He claimed he was owed �20m after investing in the club and its stadium.