THE future of Darlington Football Club was looking increasingly desperate last night after hours of negotiations to agree a rescue deal ended in stalemate.

Administrators Wilson Field admitted that the frustrating impasse meant the Quakers could be on the verge of closure after 121 years.

A full day of talks involving former chairman George Reynolds and would-be owner the Sterling Consortium ended last night with no agreement being reached.

It led long-suffering supporters to call on all parties to thrash out a settlement to save the club.

Sterling, the finance group that holds a mortgage on the Reynolds Arena, exchanged contracts for the sale of the business and assets of the club last Friday.

But the sale is subject to creditors' approval - and Mr Reynolds has insisted that he will reject a Sterling-backed company voluntary arrangement (CVA).

The Football League is also standing firmly behind its policy that all creditors must be satisfied with any deal to bring a club out of administration.

Joint administrator David Field said last night: "Everybody has their position, and if nobody moves from those positions there is nothing else we can do.

"Liquidation is looking likely. There are still opportunities to resolve it, but we're trading at a loss and we can't carry on. If we get to the stage where we can't justify carrying on, then we will close it."

The Sterling deal would have offered creditors a small fraction of what they are owed and, if accepted, would have ensured the club's short-term survival.

But Mr Reynolds says the business has been undervalued. He said he would rather see the club fold than accept the terms of Sterling's proposal.