Press Association Sport understands all parties concerned have signed a contract and Mandaric's takeover must now be rubber-stamped by the club's shareholders at an extraordinary general meeting.

The 72-year-old Serbian-born businessman, who will now resign as chairman at Leicester, has agreed a £7million settlement with the club's main creditor, the Co-operative Bank, who were owed £23million.

Press Association Sport understands all parties concerned have signed a contract and Mandaric's takeover must now be rubber-stamped by the club's shareholders at an extraordinary general meeting.

The 72-year-old Serbian-born businessman, who will now resign as chairman at Leicester, has agreed a £7million settlement with the club's main creditor, the Co-operative Bank, who were owed £23million.