Clarets fans today said they hoped the club's future was secure after chairman Barry Kilby moved to wipe out massive debts with the purchase of Turf Moor.

Under the proposals, Burnley FC's home for 121 years will change ownership to a company set-up by Mr Kilby, the club's chairman since 1998, and club director John Sullivan.

The ground and Gawthorpe training ground will be leased back for 99 years, although a buy-back clause allows directors to buy them back if funds become available.

The move, due to be ratified at the club's annual meeting on December 20, will bring some £3million into Burnley FC, helping the club to sort out its troubled finances.

Burnley still owe the bank well over £1million for the redevelopment of Turf Moor, while loan companies are still being repaid after the £1million acquisitions of joint-record signings Robbie Blake and Ian Moore and former striker Dimitrios Papadopoulos.

Supporters' groups have welcomed the surprise move, provided it gives the club a more secure future. But they also spoke of their sadness at such a drastic measure being taken.

Paul Smith, committee member of the Boundary Clarets, said he was cautious but optimistic. He said the move had come as a surprise but hoped the cash injection would settle the club's debts and give the manager more money to buy new players.

"If it's going to clear our debts it's a good thing and then we can give some more money to Steve Cotterill to carry on the tremendous job he's doing," he added.

"In the long term it could be a good investment.

"But the fears are that it could mean even less money for Steve. The crucial thing at the moment is that we need to give Steve as much backing as possible to get the two to three players that he needs."

Malcolm Hibbert, of Burnley Supporters Club, said: "It's excellent. It's been in the air for the last few weeks. Maybe there might be a bit of money now for Steve Cotterill."

Bev Todd, who runs Rossendale Clarets, said: "I never thought I would see a time when the ground would be sold off but if the finances are as bad as they seem then it's the only option.

"If creditors want the money back quite quickly its a better option than going into liquidation and administration and losing ten points."

Chief executive Dave Edmundson today moved to allay some supporters' fears and said: "It may well be that we have remortgaged our house, but what we've done is mortgage it to our own parents.

"It's being looked after by the father of the club, Barry Kilby, who can ensure that the future of the club is maintained.

"The strings were being pulled by outside creditors, who have no interest in Burnley Football Club whatsoever.

"Now, what we have is the ability to rid ourselves of that debt and, although we still have creditors, at least they are people who hold the club close to their heart."

Mr Kilby, who will own the majority stake in the new company, said: "This move enables the club to avoid the crippling effect of capital repayments that were due to commence under a creditors agreement brokered last year.

"It gives the club the chance to move forward with confidence and a fighting chance to compete with the much larger Championship clubs.

"It is sensible and hopefully, when the club is stronger, it can trigger the buy-back clause and resume ownership."