Cambridge United have announced on their official site that they are in "wide-ranging talks" with neighbours Cambridge City.
The talks centred around ground sharing and the merging of their Youth systems, but also encompassed the possibility of merging the two sides completely.
Bulls fans who made the trip earlier in the season will have seen the cramped City ground was in need of investment but City, who instigated the talks, may be looking to cash in on their major asset and move to United's Abbey Stadium. United recently scrapped their Youth side just weeks after announcing the closure of their Academy and remain deep in debt. The sale of City's ground could finance the repurchase of the Abbey Stadium after it was sold for £1.9million twelve months ago.
United Finance Director Nick Pomery expected more talks to happen quickly, but was quick to assure fans that any merger would be ratified by them first: "It's important for people to realise that no decisions have been made at the moment. We also need to make it absolutely clear that, in our view, fans are the backbone of any club, and whatever proposal we may put forward as directors - groundshare, mutual cooperation on youth, or whatever - will not happen if the supporters of both clubs cannot clearly see that it brings benefits that far outweigh any concerns.
"We want to do the right thing for football in Cambridge and for the supporters and sponsors of both clubs, and we clearly need to be sensitive to the proud histories of both clubs and their supporters."