Michael Branch is joining Chester City after all - to be nearer his Merseyside home.

City have reluctantly agreed a deal with the Football League new boys for the former England under-21 international.

And Rob Wolleaston, another player they had hoped to keep, has been allowed to return south with Oxford.

With Mark Paston freed to team up with Michael Standing at Walsall, it means the already-depleted Valley Parade squad will be shorn of another three names. But the club are confident of building up numbers again to operate with a squad of 20 once their long-term future has been secured.

Managing director Shaun Harvey said: "The administrators have some tough decisions to make and while we are losing players that in an ideal world we would want to keep, it will allow additional ones to be signed. Whoever the manager is will have the ability to form their own squad, primarily from a long list of players currently available.

"The club will be speaking to Premier League clubs to establish if we can make maximum use of the loan system which would allow us to bring more players in for the season without owning their registration. We will offer them the chance to gain valuable experience playing regular first-team football."

With no guarantees yet over City's future, the club are in a difficult position to hang on to players who want to get away.

Branch, who has to agree personal terms, has his heart set on a move to the Conference champions because of their proximity to his Liverpool roots. His girlfriend is due to give birth to their second child.

Although no money will change hands now, City will receive a bonus should Chester go straight up as well as a sell-on from any future transfer.

Harvey said: "It's a difficult situation but I believe we've reached a compromise which allows all parties to go their separate ways amicably.

"Michael has made it perfectly clear that he had not fallen out with Bradford City. But the opportunity to move to a club nearer Liverpool and not spend two hours a day on the M62 was the telling factor. He leaves with our best wishes and if he is successful, then ultimately we will benefit from a player signed on a free transfer."

Branch, who arrived 12 months ago from Wolves, scored six goals in a City shirt - but none after November.

City have also negotiated a sell-on clause with Oxford for Wolleaston, another summer signing a year ago.

Paston will walk straight into the

No 1 jersey at Walsall after long-time keeper Jimmy Walker signed for West Ham.

Harvey added: "You cannot stop players taking up offers of employment elsewhere while the uncertainty continues over our own position."

Meanwhile, Leeds boss Kevin Blackwell considered Danny Cadamarteri before making a move for Coventry frontman Julian Joachim.