Southampton have confirmed that their plc board has agreed in principle to proposals which would let a mystery investment company buy into the club.

The unnamed UK-based investor is hoping to purchase 55 per cent of the shares in parent company Southampton Leisure Holdings, and has "confirmed that it has the financial capacity to support the club and strengthen the squad".

The proposal, which would require the shareholders' backing, was revealed in a statement to the Stock Exchange.

"The investor proposes to become the majority shareholder by injecting a substantial sum directly into the company by means of a placing of new shares and to commit additional funds in order to acquire a tranche of pre-existing equity from current shareholders by means of a partial tender offer," a club statement said.

Paul Allen, the Microsoft co-founder and owner of the NFL's Seattle Seahawks, was linked with a takeover of the club this year. Ray Ranson, a former Manchester City player who has tried to buy Aston Villa and City in the past, has also been mentioned as a contender.

Southampton have been looking for new investment to secure their long-term future and boost their chances of a return to the top flight after they were relegated from the Premier League in 2005.

Meanwhile, the club have extended the loan signing of defender Christian Dailly from West Ham United for a second month.

The Scotland international was drafted in by George Burley, the Southampton manager, in September to ease his defensive crisis and has impressed in a patched-up back line, not least during Sunday's battling 1-0 win over Cardiff at St Mary's.

"He's a great pro with great experience," said Burley. "We brought him in for a month initially as we had other players coming back from injury, but we have actually lost more players and we are really short of numbers."

Right-back Alexander Ostlund has become Saints' latest casualty, the Swede requiring a scan to assess the extent of his hamstring injury.