PORTSMOUTH FC say they are close to reaching an agreement which they hope will lead to tomorrow's High Court winding up action being dropped.

The club's lawyers have been in talks with Her Majesty's Revenue & Customs over a deal If a compromise is reached, it is likely that a substantial part of the money due to HMRC will be paid, with the rest of the debt re-scheduled, avoiding Pompey becoming the first top-flight club going into administration.

Pompey are in a better position to negotiate after being taken over a week ago by businessman Balram Chainrai and improving funds by the sale of players, including Younes Kabul.

New owner Chainrai, a Hong Kong businessman, is looking to sell the club quickly and has no interest in the club going under as he made substantial loans to Portsmouth.

The south coast outfit, seven points adrift at the bottom of the Premier League, have debts of £60m.

Their players have been paid late four times this season.

Portsmouth are also involved in a separate dispute with former owner Sacha Gaydamak whom they owe £28m.

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