CHESTER City chairman Stephen Vaughan met former City boss Kevin Ratcliffe last night and agreed a deal over the money being claimed by the former Everton and Wales captain from the Deva Stadium outfit.
"The picture regarding the club's debts that we inherited is beginning to look a little clearer," said the Merseyside-based businessman.
"I have reached an agreement with Kevin.
"Hopefully we can pay off all the debts that we agree are valid," he added.
Vaughan and his board of directors are keen to settle all valid financial claims against the former Football League outfit prior to the start of next season.
As well as the claim by Kevin Ratcliffe, another large demand has been received by the Nationwide Conference club from former owner Terry Smith.
"The board of directors and myself basically refute Mr Smith's claim for £270,000, but we shall try to arrange a meeting with him and his solicitors, when we will ask him to substantiate his claims against the club," said Vaughan.
"We are looking to go into next season with a financial clean sheet. We are positive about the future and our intention is to build a strong club at the Deva Stadium, not just for next year, but for the foreseable future."
Vaughan revealed that two of the club's players could well be loaned out in the next couple of days.
"Altrincham have made an enquiry about the availability of midfield players Andy Porter and Chris O'Brien, and it is possible that they will be loaned," he said.
Fellow Nationwide Conference outfit Dover Athletic last night sacked their manager, Neville Southall. The former Everton and Wales goalkeeper had only been in charge at The Crabble for three months. Dover are bottom of the Conference League table.
Southall said: "If Everton offer me their job, I'd bring back Walter Smith as my assistant!"