Pompey owner Balram Chainrai took the decision this evening after talks with four interested groups failed to lead to a takeover of the club, which has £70million debts.

The process of going into administration has already begun and this will be completed in the High Court tomorrow morning.

Pompey will become the first Premier League club to go into administration and the nine point penalty will leave them on just seven points, 16 behind their nearest rivals.

Chainrai's spokesman Phil Hall told Press Association Sport: "We have started the process of putting the club into administration and this is due to be completed at the High Court in London first thing tomorrow.

"The administrator has begun work immediately on the paperwork and this should be completed by tomorrow."

Administrator Andrew Andronikou, of insolvency experts UHY Hacker Young, will now begin the process of cutting costs at the club to try to keep it as a viable entity.

A major sell-off of players and the prospect of a long period of rebuilding in the Championship now looms.

Hall said talks had not broken down with the four interested groups but the club had not been attractive enough to them in its current financial state.

He added: "Once the club is in a more viable state it may become more attractive to them in terms of a takeover."

Chainrai, who is looking to recover a £17million loan he made to the previous owners, has moved to prevent the club from being wound up in the High Court on Monday over £7.5million owed to HM Revenue and Customs.

Portsmouth manager Avram Grant said he was "very sad" and "very angry" at the situation.

Grant said he had been "more or less" told the club would go down that route, and stressed his experience at Pompey had been one of constant frustration.

The Israeli was installed as the club's manager in November, having joined as director of football the previous month.

He told Sky Sports News: "I feel very sad, very angry, but I want to understand more (about) the situation before I tell you my opinion.

"Of course, you can imagine. We did a football job here. Every step we couldn't do our job.

"Now I'm very sad for me of course and for everybody."

Some finance experts believe the administrator may have to terminate player contracts now to save cash.

Simon Wilson, partner of restructuring experts, Zolfo Cooper, said: "It seems certain that Portsmouth will be relegated and will need a complete restructure.

"Depending on the level of committed funding available the administrator may need to terminate players contracts to reduce outgoings because the possibility of selling players outside of the transfer window has already been denied by the Premier League."

Andronikou is expected to make a statement tomorrow of the club's position though he is unlikely to hold a news conference.

Meanwhile, FIFA is set to discuss Portsmouth's plight at its next executive committee meeting on March 18.

FIFA general secretary, Jerome Valcke, said: "That (Portsmouth) is definitely something that will be discussed.

"It will also potentially be discussed with Michel Platini before, because I'm sure in his fight for this financial fair play he has for the European market, UEFA, it is something important for him what is going on right now in the English Premier League.

"But allow me not to say anything for the time being because we have not sat with Michel Platini since we have got this information about Portsmouth and what's happening in the English Premier League."

(reopens)

Former Portsmouth midfielder Pedro Mendes had words of support for Pompey fans after his current club, Sporting Lisbon, beat Everton in the Europa League tonight.

"I feel really sad," he said. "I had a fantastic two and a half years there, made really good friends. It's sad for such a nice club with such a strong fanbase to be in that situation.

"I just want to say to the fans to be strong and stay with the club."