CHESTER City are losing up to £25,000 a month and need to generate revenue off the field, chairman Stephen Vaughan revealed at a fans' forum on Wednesday.

Although his new chief executive John Raduch, now installed at the Deva Stadium, was still appraising the club's financial situation, Vaughan said he was optimistic he could make the stadium a multi-purpose venue, to offset any football losses in the future, and had many long-term plans including an indoor arena on the site.

'We have had talks with Chester City Council and the feedback from them has been good,' he said. 'I know we can work with the council, but the main problem is with the club's former owners, Morrison Developments, who are still guarantors for the rent and want the stadium used only for football.

We will be trying to persuade Morrison's to relinquish their interest in the club.'

The Blues' chief , who this week severed his connections with his former club Barrow, has also named three new directors, Michael and Sheelagh Horne and Alan Case, after parting with 21% of his shares in the club.

They have all bought 7% of Vaughan's shareholding and are members of the Chester

Supporters' Group which tried to buy the club from Terry Smith. Mr Horne's father, Maurice, was a club director in the 60s.

Vaughan told fans that he was negotiating a settlement with ex-City manager

Kevin Ratcliffe who was owed more than £200,000 in compensation.

'Kevin told me he had no intention of causing Chester City any harm,' he said.

And in a rallying call to supporters, he said: 'One thing we have going for us is that we have the biggest fan base in the Conference, and if we can get the fans behind us we can get back to the third division.'

Chester, meanwhile, bid to maintain their unbeaten Conference record under new manager Steve Mungall when they meet Forest Green at the Deva Stadium tomorrow.

But City will be without suspended defender Steve Halford and striker Dean Spink, while midfielder Michael O'Brien is doubtful with sciatica.

Chris O'Brien, on loan from Liverpool, will return after missing Tuesday's 2-1 defeat by Stalybridge Celtic in the Cheshire Senior Cup.

The match will kick-off at 3pm, despite a clash with the televised England v Sweden game. Forest Green refused to switch the match to another day or even move the starting time.

- Steve Mungall was surprised to hear that a daily newspaper had reported he was about to sign former City defender Iain Jenkins, from Shrewsbury Town on loan. 'This is news to me,' he said. 'Who is Iain Jenkins?'

- Chester travel to Nene Park on Tuesday to meet Rushden and Diamonds in the Nationwide Conference Championship Shield. City meet last season's Conference champions as winners of the Variety Club Trophy.

- City are trying to arrange a friendly match against Liverpool reserves tomorrow week, the date of the first round of the FA Cup.