ENIC, whose managing director Daniel Levy is a Spurs season-ticket holder, revealed on Wednesday that they were holding talks with Sugar.

Levy, 38, will take up Sugar's seat on the board and become a non-executive director.

ENIC, with both gaming and media business interests, already hold a 20.2% stake in Glasgow Rangers as well as shares in Vicenza, FC Basle, Slavia Prague and AEK Athens.

Sugar will step down on completion of the deal, which is expected to take place in February next year.

Controlling interest

The agreement sees ENIC - English National Investment Company - increase its holding in the club from just under 3% to 29.9%, after snapping up 27.4m shares.

ENIC has also been granted the option of buying a further 13.2% stake in the club at a later date.

ENIC has bought the shares for 80p each, at a total cost of �22m - and at a considerable premium to Tottenham's share price, which on Wednesday closed at 61�p.

Sugar will also step down as a Spurs director when he resigns as chairman. Levy has been appointed to the Spurs board as a non-executive director.

Sugar said: "This is an exciting development for Tottenham.

"ENIC has a wealth of experience, both of European club football and the exploitation of media and other commercial rights.

"I believe that ENIC is committed to the long term prosperity of the club and has the right business skills to take it forward from here."

Top contender

Levy said: "We believe the long term profitability and capital value of Tottenham can be significantly enhanced through further exploitation of media and sporting rights associated with the club.

"Tottenham is a major British football club with a prominent sporting heritage. We are firmly committed to improving Tottenham's commercial viability as one of this country's top football clubs.

"We believe it can regain its position as a significant contender in both domestic and European competitions."

During Sugar's time in charge Tottenham have never finished higher than seventh in the league and their only trophy has been the Worthington Cup.

He also appointed six managers in a vain attempt to recapture the glory days of the 1960s.