Chester have entered administration following a second relegation from the Football League in nine years.
The club, which went down on the final day of the season, have been considering the move this week and confirmed the decision on Sunday.
A statement said: "After discussions with owner Stephen Vaughan, Chester entered voluntary administration in order to safeguard the club's future."
City could start next season in the Blue Square Premier on minus 10 points.
Similar sanctions regarding clubs in administration apply in the Conference as they do in the Football League, so the points penalty seems likely to be imposed.
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