YORK City Knights chairman John Guildford says he is handing over the club to former director Gary Dickenson, subject to contracts.

A statement posted on the club website at 10.30pm last night said Guildford was handing the League One outfit over “as a virtually debt free going concern”, allowing the team to continue their quest for promotion this season.

Dickenson has previously told The Press that talks had been “fruitful” and this morning said the "intentions" and "will" was there to push the deal through but due diligence still had to be done.

Guildford stated the deal “now just needs the legal formalities completing and RFL approval, which should be completed in the next few days”.

The Rugby Football League have yet to comment.

York City’s owners, JM Packaging, have also shown a strong interest in running the city’s professional rugby league club, while The Press understands another unnamed businessman had likewise shown an interest in getting involved.

Guildford and the Knights board announced last Thursday that they were to close the club due to issues with the groundshare with York City at Bootham Crescent and in the planned new community stadium. It followed the calling off of the Knights’ opening Super 8s game against Doncaster on Sunday, due to Bootham Crescent not being available that day.

Directors Neil Jennings and Dave Baldwin resigned from the board in the wake of that decision.

The players were told they would be made free agents but decided to stay for the timebeing in the hope a resolution could be found. They are due to meet for training tonight.

It remains unclear if Saturday’s game against Toulouse in France will go ahead.

Dickenson joined the Knights board in January 2015 but resigned two and a half months later.

Guildford's statement said: "“Today, the 25th July, as the owner of York City Knights since 2002 I wish to announce the handing over of the club, subject to contracts to Gary Dickenson Cfast Ltd as a virtually debt free going concern that will allow the club to continue the season and compete in the Super 8s to hopefully gain promotion to play in the RL Championship next season."

It later added: "I have done as much as I could to sustain professional rugby league in York and the club is handed over on a much firmer financial footing, despite the difficulties of the last two seasons, than it was in 2002 when I took control. The deal now just needs the legal formalities completing and the RFL approval, which should be completed in the next few days."