Insider Media Limited

The chairman of Leicester City Football Club is poised to reach a deal over the takeover of troubled Sheffield Wednesday. A spokesperson for the Sheffield club told Insider that both parties “hope to reach a positive conclusion by the weekend”.

He confirmed that talks between Leicester chairman Milan Mandaric and Sheffield Wednesday bosses were “ongoing”, but said that the situation at Sheffield was “complex”.

Mandaric underwent a dramatic change of heart this week after it was assumed that his interest in the club was withdrawn following an offer of £23.5m to the club, which would relieve it from administration, was rejected.

On Tuesday, his interest was seemingly reignited, and talks were resumed between the parties.

Sheffield Wednesday is just days away from being wound up, as debts with its bank, the Co-op, total nearly £30m.

The club was given a 28-day lifeline last month before facing bankruptcy next Wednesday.

Sheffield Wednesday’s spokesperson cited issues with the division of shares and bank debts as immediate problems for the club.

He said: “Talks are ongoing, and we hope to reach a positive conclusion by the weekend, ahead of the high court hearing on Wednesday.

“It’s a complex situation at Wednesday.”

The club’s director Ken Cooke and former director Mick Wright are also believed to be interested in purchasing the troubled club.

Mandaric bought Leicester City FC for an undisclosed fee in 2006. He sold the club in August this year to Thai businessman Vichai Rakriaksom and his son, Aiyawatt. Mandaric remained a shareholder in the club, and was later named as chairman.

At the time, Mandaric said via the club's website: "The deal brings new strength and energy to Leicester and offers a tremendous opportunity for supporters and the club."