THE FOOTBALL Foundation have indicated that York City will not incur financial penalties despite a delay in the formal identification of a site for the club's new stadium.

City officials had hoped to make a statement before the New Year concerning relocation but the Minstermen are subject to confidentiality clauses.

Communications and community director Sophie McGill has, however, confirmed the Football Foundation are satisfied with the progress the club are making in the matter.

Under the terms of the £2million Football Foundation loan the Minstermen received to regain ownership of KitKat Crescent from Bootham Crescent Holdings in 2003, the club were required to identify a site for a new stadium before the end of this year to avoid incurring financial penalties.

But McGill has praised the organisation for their patience and understanding.

She told The Press: "Our Football Foundation loan interest repayments are all up-to-date and we are in regular communication with the Football Foundation regarding the proposed site for our new stadium.

"They are comfortable with the current status of our plans and are pleased with the progress we have made.

"We realise supporters are keen to know the plans for the new stadium are advancing well and I can confirm that good progress is being made behind the scenes and that the York City directors continue to work hard to ensure we have a new stadium in place by 2015 at the latest.

"Although we expected to make an announcement regarding the identification of a site for the new stadium before the end of the year, unfortunately we are unable to do so as the other parties we are working with have insisted plans remain confidential at this stage."

As previously reported by The Press, land owned by Nestlé on Wigginton Road would appear to be the most practical and likely venue for a new stadium with the York Central and British Sugar sites still subject to time constraints.

McGill also reiterated the financial importance of leaving the club's 75-year-old home "as soon as possible".

She added: "At present, we continue to have the burden of around £140,000 in loan interest to pay to the Football Foundation each year so it is in the best interests of York City that we move to a new stadium as soon as possible.

"Not only will a move release this financial burden but a new stadium will present us with greater commercial opportunities, which will increase our revenue and, in turn, provide us with an enhanced playing budget to further our football ambitions."