Valley Parade owner Gordon Gibb last night confirmed he had reached an "agreement in principle" with Bradford City's steering committee over the club's use of the stadium.

Mr Gibb, who has been locked in talks with steering committee representative Jim Brown, said he believed the deal had secured the short-term future of the club.

Under the terms of the agreement, it is understood the steering committee could look to purchase Valley Parade over a period of years.

However, in order for City to come out of administration and secure its long term future, it will still be necessary for a complete takeover of the club to be negotiated.

Mr Brown welcomed the development but stressed there were still major obstacles to overcome before the club could be sure of taking part in next season's fixtures.

The issue of the £300,000-per-year rent which is due to former City chairman Mr Gibb had been one of the key factors which could have forced the club to close last Thursday.

"The immediate danger has been removed," Mr Gibb told the Telegraph & Argus.

"I have had some terrifically positive conversations with the steering committee and positive discussions with the administrators as well."

Mr Gibb said he was now hopeful that either the deal with the steering committee or his own 'rescue bid' for the club would proceed.

"The positive message is that we can confidently say that at least for the short term the club's future is secure," he said.

Mr Gibb's statement comes ahead of tomorrow's Football League board meeting at which City's participation in next season's fixtures will be debated.

However, Mr Brown stressed there was still much work to be done by the steering committee.

"I am pleased that we are making progress and I am pleased that the heads of terms of a deal with Mr Gibb are in place," he said.

"It is a boost ahead of tomorrow but there is still a short-term funding issue that must be resolved. We have just got to keep going at this stage."

Before last Thursday's crunch meetings at Valley Parade, the administrators made it clear there were still a number of issues that needed to be resolved before the club could compete in next season's Coca Cola League One.

As well as the ground rent issue, that included meeting staff and player costs for July, securing expertise in running the club, and ensuring commercial, advertising and sponsorship revenue targets were hit.

Mr Brown said the club was massively behind schedule in terms of its preparations for the new season with sponsorship deals and other commercial packages still waiting to be negotiated or put on sale.