Chief executive David McNally said the story is defamatory
Norwich City Football Club has said it will seek damages against a national newspaper which reported that it was going into administration.
The News of the World report on Sunday, headlined "Canaries on brink", said the club had called Ernst and Young and KMPG as potential administrators.
Norwich City chairman Alan Bowkett released a statement on the club's website.
He described the story as "tosh" and "a complete fabrication".
"The News of the World will be hearing from our lawyers and we look forward to claiming substantial damages," he said.
The newspaper's report said the club was "teetering on the brink of financial meltdown" and could go in to administration on Thursday.
It added that the club, which is at the top of League One, has had capacity crowds, but its 2009 accounts "showed a £5m loss".
Mr Bowkett said: "In all my years in working in corporate finance I have never read such tosh and complete fabrication."
Chief executive David McNally said the story was "completely untrue".
"As far as the club is concerned we consider the story is defamatory," he added.
Norwich City beat Brentford 1-0 at Carrow Road on Saturday to take them to the top of the table.