Coventry City chairman Tim Fisher has confirmed that the club are progressing with plans to leave the Ricoh Arena at the end of next season.
The League One strugglers have been at the Ricoh, which has a capacity of 32,600, since 2005 but their tenancy is due to end in 2018.
The club had considered building their own stadium but have now shelved those plans and are discussing moving to the Butts Park Arena, home to Coventry Rugby.
"We weren't able to close a land deal on our own stadium - full stop," Fisher is quoted by BBC Sport as saying. "But we have spent a lot of time working with the Football League and Coventry Rugby Club to develop a stadium which would be more than ample in terms of capacity.
"It's the preferred option because it keeps us in the city. We are committed to staying in Coventry.
"[Coventry Rugby chairman] Jon Sharp has made a statement over the last day or so which shows his commitment, as long as we have some form of mediation. If he can accommodate the football club, and all the infrastructure challenges, then that's what they will do.
"As long as there is a breakout of peace, I believe the Butts Park Arena is an option for a Coventry RFC and Coventry City groundshare."
Butts Park Arena currently has a capacity of just 3,000.
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