Non-League Scarborough are likely to be wound up at the end of the season - unless a deal saves them from closure.
The Conference North club have debts of over £2m and administrators are petitioning to force the club to close.
Boro face a compulsory winding-up order because their voluntary agreement with creditors appears to have failed.
The club's directors say they will fulfil this season's commitments but Boro will not take part in competitive football in the 2007/08 season.
Administrators Begbies Traynor will force the closure unless there is a valid appeal in the next 14 days.
The club's chairman, Ian Scobie, met with the administrators this week, but he has so far not commented on the outcome of those discussions.
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It is thought a request from the club to extend their credit agreement was refused by creditors.
Boro had planned to sell their McCain Stadium ground for about £4m which would have enabled them to clear their debts and build a new stadium on the outskirts of Scarborough.
But it appears time has almost run out for the former Football League club who played Chelsea just three seasons ago in the FA Cup fourth round.
Scarborough lost their League status in 1999 when they were relegated with the last kick of the season.
They were expelled from the Conference last season after going into administration for a third time and placed in Conference North with a 10-point deduction this season.
The club are facing relegation to the UniBond League because they are currently second-bottom of Conference North with just four games remaining.