Leeds United could be forced into a fire sale of players in order to keep going until their administration is sorted out.

Ken Bates' hopes of buying back the club were thwarted when the Inland Revenue launched a challenge an hour before Tuesday's deadline.

And while negotiations are going on between the club, administrator KPMG and the Revenue, no-one knows when the situation will be resolved.

Manager Dennis Wise is prevented from strengthening his squad all the time the club is in administration but the Football League have confirmed that Leeds are allowed to sell players.

With Bates threatening to stop funding the day-to-day costs of running the club, that may be the only way of keeping it from folding.

Kevin Nicholls has already agreed a deal to go to Preston and Fulham are keen to sign striker David Healy. Other saleable assets are Eddie Lewis, Shaun Derry, Richard Cresswell and Jonathan Douglas.

If Leeds do have to sell to survive, they are likely to receive far less for the players than they would in the normal market, and if the cash goes into maintaining the club over the next few weeks, it will severely handicap squad strengthening when the administration process is over.

Meanwhile, Leeds have moved to re-assure fans who have paid for season tickets for next season that their money is safe.

In a statement they said that the cash has been put in a separate account and will be refunded if the club is unable to start the new season.