YORK City have announced that manager Gary Mills has agreed, in principle, to accept the terms of his new contract offer.

The ultimatum for Mills to sign a reduced-terms deal to stay in charge of the Minstermen following the relegation to National League North passed today.

But Bootham Crescent officials are still waiting for ratification from Mills’ representatives - the League Managers’ Association - that he has formally accepted what has been put on the table for 2017/18.

The club statement read: “The club received a text message from Gary Mills this morning, informing the club that he is, in principle, willing to accept the terms in the offer for season 2017/18, subject to the terms being part of a formal contract of employment. The club was contacted by the League Managers’ Association, the advisors of Gary Mills, who requested to see the contract.

“The club has, this afternoon, sent the formal contract of employment to the LMA and now await their acceptance. This is now a matter of urgency, as the club has been contacted by players and their representatives wanting to secure employment for next season.

“We would not want to lose some of these key signings because of time-related issues.”

Mills was unavailable for comment following the statement but, on Tuesday, after he had been given 48 hours to commit his future to the Minstermen by chairman Jason McGill, he told The Press that he still wanted to remain as manager next season, saying: ““I want to be at the club next season but, at the moment, all my thoughts are with preparing for Wembley and preparing my players for that.”

The former Gateshead and Wrexham chief came within minutes of keeping the Minstermen in the National League after his team displayed top-ten form following the turn of the year.