Nicky Law can build a squad to prosper within next season's tight budget restraints.

City's wage bill is being halved to just over £2.5m as chairman Gordon Gibb continues to tighten belts post-administration.

Twelve first-teamers are out of contract in the summer and with a £1,500-a-week ceiling on future deals, the dressing room is shaping up to look very different.

But Gibb believes Law can operate to a figure that is a third of the sum City were shelling out when they were relegated to Division One two years ago.

Gibb said: "Nicky is used to working within financial constraints as he has already shown and I'm confident he can do a job.

"I think this is a realistic budget for this division and it's up to Nicky to turn it into names and playing acquisitions. As a board, we might hear of players who we feel could do well but it's the job of the manager to project his list for us.

"Every club should set a budget in a similar way. It's good house-keeping."

Ashley Ward has one year left on his £18,000-a-week contract but several other high-earners are likely to move on.

Gibb added: "We all know in our heart of hearts that the current wage bill when compared with some performances of the first team can make a mockery of the situation.

"Sometimes it has not been the players' fault because of injury absences but on other occasions if you work it out on a pound for pound basis then it simply hasn't added up.

"I'm glad people support what we are trying to do at the club. But even if it made me very unpopular this is a route I would be pursuing because it has to be done."