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Coventry City have agreed a deal to play their home matches at Northampton Town’s Sixfields Stadium, the Telegraph can exclusively reveal.

The Football League’s board will meet on Thursday to discuss whether to approve the arrangement.

The Telegraph also understands the Sky Blues are set to be selected as the preferred buyer for a site in “the Coventry area” to build a new stadium - and to enter exclusive negotiations over a sale.

It coincides with a sales process for the Coventry Bees speedway stadium site at Brandon, as we have previously revealed.

Several Telegraph sources confirmed Coventry City and Northampton Town have agreed a deal for the Sky Blues to play at The Cobblers’ 7,600-capacity stadium from the new season, which begins on August 3.

The first Coventry City home game there would be against Bristol City on Saturday, August 10.

The deal could be approved by the League whether or not City are still in administration at the start of the season.

As the Telegraph also reveals today, Coventry City Football Club Limited’s administrator Paul Appleton has now issued his confidential proposals for creditors to sign a Company Voluntary Arrangement (CVA) that would bring the club out of administration, preventing liquidation.

It is not yet known if creditor Arena Coventry Limited - the part-Coventry City Council-owned Ricoh stadium firm owed rent arrears by the Sky Blues - will try to block the CVA and prolong administration.

ACL directors and lawyers - and leading councillors - have stated they favoured new owners for the football club, which ACL would also allow to invest in the stadium company as partners.

The arrangements with Northampton Town could see home matches played there for at least three years - the minimum period Coventry City Football Club (Holdings) Limited director Tim Fisher claims would be needed to build a new stadium.

Many fans believe it could take longer to get planning permission and other agreements in place.

It is understood negotiations over groundsharing with other West Midlands clubs including Walsall Town have failed.

The Saddlers’ manager Dean Smith said it would ruin the pitch at the Banks’s stadium.

In the meantime, talks had been going on with Northampton Town over use of the Sixfields all-seater stadium, which opened in 1994.

Unconfirmed reports are that Town may want to use the revenue for future development.

Coventry City fans staged a protest outside the Ricoh stadium on Saturday calling for the club to remain in Coventry.

More than 13,000 people have signed the Telegraph’s petition to ‘Keep City in Coventry”.

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ACL has offered to the administrator use of the Ricoh Arena for home games rent-free - with Coventry City meeting matchday costs only - but only while the club remains in administration.

Many fans are calling for the removal of the Sky Blues’ hedge fund owners Sisu, a related firm of Coventry City Football Club (Holdings) Limited, Arvo Master Fund and Otium Entertainment Group Limited.

The move towards groundsharing follows the collapse in talks earlier this year between Sisu, Coventry City and Coventry City Council over Ricoh rent, matchday revenues and stadium ownership.

Otium has been selected by Mr Appleton as the preferred buyer of CCFC Ltd, the company Arvo placed in administration in March following High Court attempts by ACL to place it in administration.

Coventry City Football Club (Holdings) Ltd claims it has had no choice but to groundshare and seek to build a new stadium - as ACL had publicly stated all negotiations were at an end before they sought the High Court administration order.