A council leader has said the long-awaited Southend United takeover deal could be completed by Monday.

Daniel Cowan, the leader of Southend-on-Sea City Council, said the football club’s current owner and the prospective owners are in negotiations to complete the sale.

The consortium hoping to buy the Blues – the Custodians of Southend United (COSU) – has said it wants to decouple the sale from a housing development at Fossetts Farm, where long-time owner Ron Martin had previously planned to relocate the club.

In a recent statement COSU, led by Australian businessman Justin Rees, said it was clear the housing deal could not be completed for several more weeks.

Mr Cowan said that a new heads of terms – an agreement in principle between two parties – had been drawn up for the development, and will now be subject to due diligence, a legal term for a comprehensive appraisal.

Speaking to BBC Essex, he said the plans for the Fossetts Farm site were now in a “much healthier space”, but added the due diligence would be a “long process”.

The National League has ordered Southend to provide a bond of £1m because of the uncertainty over the club’s financial situation.

It is understood that demand would be lifted should the takeover of the club be completed.

On Wednesday at the High Court, a winding up petition that had been hanging over the club was finally dismissed.

Fans worried about the future of the club have said the on-going takeover saga has been agonising.