Julian Rhodes was today sitting down with the club's administrators and steering committee to thrash out what needs to be done to take the cash-strapped Bantams out of administration.

Former City chief executive Mr Rhodes yesterday agreed the key terms of a deal with Valley Parade owner Gordon Gibb, which could pave the way for City to come out of administration by the end of September.

Mr Rhodes has agreed to pay the rent due on the stadium to former chairman Mr Gibb, with a view to buying the ground back at a future date at an agreed price.

The deal is similar to that which had been agreed between the pair three months ago, but is understood to have broken down over the issue of personal guarantees.

"The discussions have been a lot more sensible and have been progressing quite nicely," said Mr Gibb, who now plans to formally withdraw his own 'rescue bid' for the club.

"I was never keen to take the club on and I made it quite clear I did not want to be involved in its day-to-day running or, indeed, even be at the ground.

"Now that Julian is back involved and is willing to take the club forward, there is a new exit strategy and that is the preferred option.

"If the negotiations that we are doing with Julian progress as intended, they will supersede the rescue package.

"I think it is right and proper that someone else gets involved rather than me, when I have made it clear that I really don't want to be there."

But Mr Gibb said he was still angry and disappointed at the way he had been treated by the club's administrators who, he believes, cast him as the major obstacle in the efforts to save the club.

Mr Rhodes is now planning to sit down with members of the steering committee to draw up an offer to creditors, known as a Company Voluntary Arrangement.

That needs to win the support of a majority of creditors to enable the club to come out of administration.

It is then envisaged that the steering committee would handle the day-to-day running of the club with Mr Rhodes also playing a significant role.

"I am pleased that we have finally made some significant progress," said Mr Rhodes today.

"There is still some work to be done, but I believe the basis is there for a deal which will allow the steering committee and myself to take the club forward."

Mr Rhodes is now looking at the issue of short-term funding and how the club can help manager Colin Todd to assemble a squad capable of competing in next season's Coca Cola League One, which starts on Saturday, August 7.