Director Geoff Hulley and former director Keith Addy yesterday both agreed at a meeting in a Sheffield hotel to sell 10 per cent stakes in the club to Sheard.

But Sheard still needs to provide legal proof of funding and arrange a meeting between his lawyers and those of the two shareholders within the next seven days.

His consortium needs a 30 per cent stake in the Championship club to effectively take control at Hillsborough.

Former chairman Dave Allen has already agreed to sell his 10 per cent and fans group Wednesdayite are currently balloting members over the sale of their 10 per cent stake.

It is understood that Sheard's consortium, a Swiss-based trust, are paying 20p a share under the terms of the deal, which equates to £4m for a 40 per cent stake in the club. In addition, they have also agreed to pay off loans made to the club by Allen, Hulley and Addy.

Under the rules of the Takeover Code, the consortium is obliged to make an offer for all remaining shares in the club once it has secured a 30 per cent holding.

The result of Wednesdayite's ballot will be announced after a Special General Meeting on August 6 – just three days before the start of the new season.

The Owls have debts of £27m and have been out of the Premier League for the last eight years.

Sheffield United striker Luton Shelton has completed a £1m move to Norwegian side Valerenga.

The 22-year-old, who the Blades signed from Swedish outfit Helsingborgs for £1.85m in January 2007, has struggled to force his way into the first-team picture at Bramall Lane.

United manager Kevin Blackwell said: "Luton wasn't exactly what I was looking for – he was a bit of a maverick."