Leicester: Will keep on selling (Ross Kinnaird/Allsport)

The Foxes have admitted cashflow problems beacuse of their big wage bill and will still be able to offload players as they seek to secure the club's future.

And they will have special dispensation to ignore the first ever transfer window, with the club's existence taking priority.

The Foxes have sold winger Matthew Piper to Sunderland for £3.5 million and midfielder Lee Marshall to West Brom for £800,000 and loaned former England keeper Tim Flowers to Manchester City for three months, but need to reduce their squad - and wage bill - further.

But in a statement to the club's PLC, the club's directors fired a stark warning that 'further player sales and loans are vital to the successful implementation' of a plan to secure the Leicester's future.

The plan is based on `focused upon increasing the group's cash resources and significantly cutting costs'.

Leicester have admitted `short and medium-term cash-flow problems' which will force them to sell players and cut wages in a bid to keep the club afloat.

Their wage bill, after the collapse of ITV Digital, is 'unsustainable in the Nationwide League' with big earners like Matt Elliott, Gerry Taggart and Muzzy Izzet still with the Foxes. .

The Leicester directors now intend to implement a three-point plan to try and end their cash-flow problems.

They intend to identify additional sources of finance, use the club's current cash resources more efficiently and 'raise fresh equity capital' from shareholders.