Aston Villa chairman Doug Ellis has confirmed to the Stock Exchange that negotiations about a potential takeover of the club are underway.
Four consortiums have expressed an interest in Villa, with American tycoon Randy Lerner, who owns NFL franchise the Cleveland Browns, believed to be in pole position to buy the club.
In a statement released to the Stock Exchange, Ellis said: "Extensive discussions are ongoing to determine whether a formal offer for the issued share capital of the company will be forthcoming."
Villa also announced their preliminary results for the year ending May 31, 2006, showing that the club made an £8.2million loss before tax.
Revenue dropped from £51.6million to £49million, partly because attendances were down by 8.7 per cent.