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In a meeting at their Milton Road ground, Cambridge City Chairman Arthur Eastman told fans that the board had sold the Milton Road site.
Few details of the deal were announced, but the purchasers are believed to be York Construction, the club's main sponsor. The club are expected to vacate the ground at the end of the season, but do have an option to remain for the 2006/07.
A link up with Cambridge United was unanimously vetoed by City fans in a show of hands, but City board members refused to rule out the possibility entirely - and United finance director Nick Pomery has admitted that City directors joining the United board has already been discussed, at City's request: "I think we need to see what comes of the forum and what that might mean for any possible decisions between the clubs. It's not really for United to put their size nine boots into the discussion that City directors and fans are having. They've got come to the conclusion over whether the proposition that they brought to us is something they can pursue any further. Clearly there's still some disquiet among City fans and I know by what we went through in the summer the issue is can United help in City's difficulties without damaging United? That's the proposition we're trying to work our way through and maybe we can make it happen, maybe not."
City fans have already formed an independent ground, Cambridge City Action Group, to help preserve the City club - and have threatened to form their own City side if a merger takes place.
Should merger talks fail, City are likely to ground share with fellow Conference South side Histon.
