Coleraine lifted the Nationwide Irish Cup in May 2003

A last-ditch attempt by the Bannsiders to reach agreement with the Inland Revenue is understood to have failed.

Coleraine are believed to have increased an earlier offer but this has been rejected.

The club has reached agreement with some other creditors but still owes more than �360,000 in tax.

Bannsiders boss Marty Quinn told the BBC that "it looks like the end" and described it as "a massive blow for the town".

"I have enjoyed my five and a half years at the club but my thoughts now are with my players".

"The transfer window closes soon and they will have to look for new clubs. I have brought five or six new players in during the close season.

"I am flabbergasted that we have gone to the wall. I thought it would be ok but then I got a phone call to say it's all over."

If Coleraine are not able to take their place in the top flight, relegated Crusaders could get a reprieve.

However, First Division club Donegal Celtic could also be interested in applying should a Premier League vacancy arise.

Coleraine are regarded as one of the biggest provincial clubs in Northern Ireland football and their demise would be a huge blow to the local game.

Only a few months ago, another 2004-05 top-flight club Omagh Town went out of business.