Worcester City will have a reduced debt to pay off now they are to get less for St George’s Lane.

The Blue Square South club owe the best part of £2million to the Royal Bank of Scotland, money that will come from the sale of their ground.

However, because the value of their century-old home is likely to reduce to around £4million, Worcester will only have to pay in the region of £1.2m to the bank.

That is because the figure owed to RBS is proportional to whatever the club can get for the Lane, with Careys New Homes poised to agree a reduced deal.

A formula to work out the amount of debt owed has long been agreed by the club’s board of directors.

Originally, City would have had to part with about £2million had they secured the £7.36m initially reported as the sale price.

City finance director Keith Stokes-Smith confirmed the club would pay less but said: “I am not pleased we are paying the bank less as it means we are getting less for the ground. I would rather have more money for the ground and pay the bank more.”

Worcester, however, will still have far fewer funds available to them to build any new stadium.

On Saturday, chairman Anthony Hampson told a fans’ forum that the move to Nunnery Way was no longer a viable option. However, a City delegation, including director David Hallmark and vice-chairman Jim Panter, yesterday met with Worcester City Council officials, including John Wrightson, head of urban environment.

The Guildhall meeting addressed both the St Modwen application for Nunnery Way and Careys’ plans for the Lane.

Wrightson said: “It was to review progress on the planning applications that the club has an interest in and it’s the sort of thing we do on major applications in any case when we are working up towards finalising the reports and recommendations.

“There are still matters for the club to work out which will have a bearing on how quickly we can bring the applications to the point of decision, but it was a full exchange of views.”

He also said the council would continue to work with the parties involved with the applications until instructed otherwise.