Chester City chairman Stephen Vaughan is close to reaching a multi-million pound deal to by Second Division Tranmere Rovers, say reports.

It is believed that Vaughan and his business associates met Rovers chairman Lorraine Rogers on Monday with a view to securing an amicable agreement.

Plans drawn up by the Chester City chairman's company Vaughan Promotions include a new ground for Tranmere on the Wirral.

The new stadium would be financed by the sale of Rovers' current ground Prenton Park for development, with the club ground-sharing with Chester during construction.

Part of the Vaughan Promotions package is to install Manchester-based businessman David Pace as the new Tranmere Rovers chairman and chief executive.

Pace is a former director of Vaughan Promotions and is currently chairman of UniBond League side Droylsden.

The only other prospective bidder for Rovers is a consortium consisting of the Tranmere Rovers Supporters Trust and the charitable organisation Weston Spirit.

But it is thought that they would be unable to table a a realistic and acceptable financial offer for the club in the near future.

Should Vaughan Promotions' offer be accepted by Tranmere owner Peter Johnson, Stephen Vaughan would still retain his majority shareholding in Chester City.

Vaughan has insisted on several occasions that his bid for Tranmere is not a prelude to merging the near neighbours.

"The Tranmere Rovers deal is a business opportunity for my company. My position at Chester City will remain unaltered," he said.