Sheard, who will be backed by Swiss and German investors, is to acquire the 30 per cent stake in the club currently owned by former chairman Dave Allen, director Geoff Hulley and former director Keith Addy.

The news could signal an end to the financial nightmare that has engulfed the club since relegation from the Premier League eight years ago.

Debts have spiralled to £27m and, depending on other results, the Owls may still need to win the final game of the season against Norwich City on Sunday to guarantee Championship survival.

However, as revealed in last week's Yorkshire Post, Sheard's deal does not hinge on whether the Owls stay up and yesterday accountants Grant Thornton were appointed to administer the acquisition of the shares.

Sheard's consortium has set aside another £35m to acquire the rest of the club's shareholding, reduce the debt and provide money for a promotion push next season.

The Co-operative bank, the club's biggest creditors, have always been supportive of the current board and maintenance of the club's overdraft will be essential in avoiding administration.

It is not yet clear whether Sheard's consortium plans to wipe out all of the debt or just a percentage; the latter option would leave more money available for investment in the side.

Fans group Wednesdayite, who were gifted a 10 per cent stake in the club seven years ago, held talks with Sheard last week and plan to ballot their members about the possibility of a sale.

The Shareholders' Association, which holds a 12 per cent stake in the club, also attended the meeting and would help Sheard were they to advise their members to sell.

The remaining 60 per cent stake in the club is divided among a large number of minority shareholders who would be offered the same price to sell – 30p a share – as offered to Allen, Hulley and Addy.

Leisure tycoon Allen quit as chairman in November last year after the collapse of two proposed takeover deals involving Chinese businessman Carson Yeoung and former Everton director Paul Gregg. Both were allegedly put off by the difficulty of obtaining a majority shareholding in the club.

Allen, who also rejected a takeover bid by former Chelsea chairman Ken Bates two years ago, has yet to be replaced as chairman. Director Addy resigned a short time after Allen – leaving Bob Grierson, Ken Cooke and Ashley Carson serving alongside Hulley on the board.

Former Boston United chairman Jon Sotnick publicly entered the takeover battle last week and is understood to have held talks yesterday with finance director Grierson.

At the weekend, Sotnick and his associate, Jim Redwall, also held a meeting with representatives from Wednesdayite and the Shareholders' Association in a Sheffield hotel.

Sheard's proposals appear to have edged out Sotnick, who is based in North Yorkshire, and is also backed by foreign investors. Once solicitors have completed the final stages of due diligence, a formal announcement will be made to shareholders.

The Owls' decision to slash ticket prices for this weekend's game against Norwich, meanwhile, is set to generate the biggest attendance at Hillsborough for seven years. Over 35,000 are expected, including nearly 5,000 travelling supporters – 38,437 attended a game with Sheffield United in 2001.

Club captain Lee Bullen has been ruled out of the season's finale after suffering a hamstring injury during the victory at Leicester City.

It effectively means that Bullen's career at Hillsborough is over as the Owls have indicated that the veteran defender's contract will not be renewed when it expires this summer.

The Owls, meanwhile, can look forward to an additional cash windfall after former winger Chris Brunt helped West Bromwich Albion clinch promotion to the Premier League.

Brunt, who scored an all-important equaliser against Southampton on Monday night, moved to The Hawthorns in August, but the £3m deal included £500,000 in performance-related payments.

Last night, the Owls would not confirm the amount they have received so far or what they expect to receive this summer as a result of Albion's promotion.