In an attempt to avoid entering administration, Watford have asked former chairman Jimmy Russo to suspend his demand for repayment of a £4.88million loan. Russo resigned as chairman on Tuesday evening and set a deadline of Thursday afternoon to receive the cash - a move which would mean the Hornets would have to call in the administrators and face a 10-point penalty from the Football League.

But major shareholder Lord Michael Ashcroft has now underwritten a £7.5million share issue, which the club says guarantees Russo his money in the future and would ensure the club stays afloat.

A club spokesman said: "The ball is now firmly back in Jimmy Russo's court."