The board of Southampton has agreed in principle to an offer from an investment fund, led by Ray Ranson, in exchange for becoming the majority shareholder in the Coca-Cola Championship club.

The fund has offered the club a cash injection of £10 million, which could be spent on new players, as well money towards refinancing the debt generated from building its new stadium, which is up to £25 million. The rest of the money will be used to buy the 55 per cent stake from the main shareholders, including Michael Wilde and Rupert Lowe, both former chairmen, and Leon Crouch, who sits on the plc board. The deal, which could be worth £40 million in total, would value the club at just short of £20 million, without the debt.

Ranson, a former player who has become a financier, has tried previously to buy Aston Villa and Manchester City, but failed because he was unable to raise sufficient money.

Southampton believe that new investment is needed to avoid the sale of promising players, such as Theo Walcott and Kenwyne Jones, who have left in the past two years, and because the parachute payments that it received from the Barclays Premier League have now ended.

Should the initial offer gain approval from the main shareholders, a formal offer will follow.

“The investor has stated that the above proposals represent the beginning of a proposed long-term commitment on its part as a strong and supportive shareholder whose interests would be closely aligned with those of current shareholders and supporters of Southampton,” the club said in a statement.

“In addition to the significant equity investment proposed, the investor has confirmed it has the financial capacity to support the ongoing development of the club and to strengthen the first-team squad.”

Paul Allen, a co-founder of Microsoft and the world’s nineteenth richest man, was linked with a takeover of the club in April.