Ipswich have applied for a temporary administration order as they seek to deal with their financial problems.

A news conference at Portman Road revealed the move as Town became the latest club relegated from the Premiership to suffer financial difficulties.

They follow Leicester and Bradford in having money troubles since dropping out of the top flight.

We have sought strenuously to avoid this eventuality by all reasonable means Ipswich chairman David Sheepshankss

The club are keen to stress they are not going into full administration.

Under the terms of temporary administration, the existing club management will stay in place while they try to rebuild their finances.

Financial company Deloitte and Touche will act in a supervisor's role.

Tractor Boys' chairman David Sheepshanks claimed the club were left with no choice.

Sheepshanks said: "We have sought strenuously to avoid this eventuality by all reasonable means.

David Sheepshanks was unable to avoid the nasty medicine

"However, in the end, it has proved impossible to cope with the immense financial burden caused by relegation from the Premiership and what followed.

"Ultimately we have simply not been able to cope with the net loss of some �15m of income caused by relegation and the almost immediate collapse of the transfer market.

"That has prevented us from trading players to right the ship on a scale that would previously have been possible.

"The demise of ITV Digital and the introduction of new transfer windows only served to exacerbate our problems."

Jamie Clapham was sold to Birmingham during the January transfer window for �1.5m, but that has not been enough to solve the difficulties.

Hermann Hreidarrson and Matt Holland turned down big-money moves earlier in the season and there have been no takers for Finidi George and Martijn Reuser.

But Sheepshanks insisted the club had no regrets about their transfer policy in recent years.

"Even with hindsight I doubt whether the board would have deprived the manager with funds for new players of his choice to consolidate Premier League status," said Sheepshanks.

In November Ipswich revealed a loss of �3.3m during the last financial year and recently laid off 18 non-football staff.