Hereford United's hopes of financial salvation could take a turn for the better in the next few weeks.

Potential backers of the cash-strapped club are due to hold meetings with Herefordshire Council's leader Terry James within the next three weeks.

It could provide a massive boost to United, who must somehow repay a £1 million loan to property developers Chelverton by May next year.

Mr James says he has already had talks with selected individuals, and now plans to have further talks with an undisclosed group of potential investors.

Financial investment is vital as Chelverton have stressed that they will not write off the £1 million investment that saved United from going out of business almost five years ago.

Chelverton were looking for United to relocate as a way of paying back the debt, but the council have stressed that they would oppose a supermarket being built on the Edgar Street site.

Mr James, in a letter to Chelverton, has said he would only have a serious discussion on relocation if it could be guaranteed there would be enough money to buy a new site for United and build a stadium on it.

Mr James said: "Nothing is going to happen overnight. Chelverton may wish to hang on and see if the council is going to change its mind over the use of the football ground. But we are very unlikely to change our views."

Chelverton director Simon Morgan said: "I have been told that there are parties interested in investing in the football club but we don't know their identity and we ourselves have not been contacted.

"If they are out there, I would appeal to them to come forward."