Coventry have confirmed further "constructive and encouraging" meetings have taken place with the city council and the Higgs Charity over ways to strengthen the club's financial footing following relegation to League One.

The cash-strapped Sky Blues are tenants at the Ricoh Arena, which is jointly owned by the council and Alan Higgs charity and managed by Arena Coventry Limited, but they have reportedly not paid their £100,000 rent for the past two months.

Coventry are keen to lower the £1.2million annual figure and be able to bring in other matchday revenues, and they will now continue to hold formal discussions over the next month having first announced last week that positive talks had taken place.

A joint statement on the club's official website read: "Representatives from Coventry City FC and its owners SISU met with senior officials from the city council and the Higgs Charity at council house on Thursday afternoon.

"The football club presented detailed plans and budgets for stabilising its immediate future in League One together with an outline proposal of how the club and Ricoh Arena (operated by Arena Coventry Ltd and jointly owned by the city council and Higgs Charity) could be more closely aligned with a view to growing and developing both the club and the stadium business.

"Although the specific detail of the meeting remains confidential, all parties described the talks as highly transparent, constructive and encouraging, recognising that both the football club and stadium are very important assets to the wider community.

"Further meetings between all parties are set to take place over the course of the next month."