Portsmouth have confirmed that they will go into administration on Friday after failing to find a buyer to help clear their debts and end fears of the club being wound up in the High Court.
The move is expected to offer Pompey a chance of survival as they look to avoid the winding-up threat Her Majesty's Revenue and Customs are trying to impose on them.
HMRC are chasing the South Coast club for a staggering £11million tax bill and, with former owner Sacha Gaydamak also reportedly owed millions and one-time defender Sol Campbell suing the beleaguered club, their problems are mounting.
Going into administration means that Portsmouth will be docked nine points and makes it all but certain that they will be relegated from the Premier League this season.
A spokesman for current Pompey owner Balram Chainrai confirmed: "Administration would mean the club re-emerging as a healthy financial entity.
"The club would then become an attractive proposition for a potential buyer who could invest new funds in rebuilding the club's future.
"The serving of this notice means the winding-up order is automatically suspended. It means the club is safe, can fulfil its fixtures and as far as is possible it is business as usual."
An emotional Pompey boss Avram Grant had earlier said: "I feel very sad, very angry, but I want to understand more about the situation before I tell you my opinion.
"Of course the situation is upsetting, you can imagine. We did a football job here. Every step we couldn't do our job. Now I'm very sad for me of course and for everybody."