Following speculation in the Yorkshire Post last week after Mr McCabe took his share ownership above 75 per cent, the Blades issued a statement to the Stock Exchange yesterday confirming his intentions.

Significantly, the current Sheffield United plc chairman is proposing to buy out shares owned by around 10,000 fans who hold them mainly for sentimental rather than investment reasons.

At this stage no formal offer has been made for the remaining shares. Mr McCabe and his family currently own 75.17 per cent of the club's shares after a recent buying spree. Going above 75 per cent meant he had enough voting power to force a return to private ownership.

The club's plc board issued a statement yesterday confirming it had considered an offer from Mr McCabe's company, Scarborough Group Holdings, at a meeting on Thursday.

It said the Scarborough proposal included an equity fundraising for the club and that Mr McCabe's company proposed to make a cash offer for all the remaining shares.

Shareholders who accept would receive "a certificate of recognition" as a memento of their shareholding and it is also proposed that the new private company would continue to hold annual general meetings for past shareholders "for the foreseeable future".

The statement also confirmed that Scarborough would seek to de-list the club from the Stock Exchange, where it is currently listed on the Alternative Investment Market (AIM) with the aim of substantially reducing associated red tape costs.

The proposal on the table also includes plans to separate the football side of the business from the club's property interests, to guard against the impact of a depressed commercial property market.

Mr McCabe could not be contacted for comment last night.