WREXHAM'S directors yesterday announced plans to take the Red Dragons into administration to prevent the club being liquidated in the High Court today.

The move came after the club's attempts to defer today's High Court hearing into a winding-up order issued against the Dragons by the Inland Revenue over a £900,000 tax bill failed.

The club's lawyers are hoping that by telling the High Court Wrexham is seeking an administration order the hearing over the winding-up petition will be adjourned, staving off the threat of liquidation.

But Wrexham could be plunged into a relegation battle following the announcement as all teams going into administration are deducted 10 points by the Football League.

At the moment this would leave Wrexham second from bottom in League One and just a point above basement club Stockport County.

The points are not deducted until the court makes the administration order, which will probably be in about a fortnight's time.

Directors Dave Griffiths and Dave Bennett yesterday said they had chosen administration as the lesser of two evils, given liquidation would have brought the club's 132-year history to an end.

Administration will allow the club to continue to function, but some assets will be sold to raise cash for creditors.

The directors are still clinging to the hope owner Alex Hamilton will decide to sell the Dragons to former business partner Mark Guterman before the administration order is issued.

Former Wrexham chairman Guterman has offered in excess of £2.5m for the club, but has still not received an answer from Hamilton.

Bennett said yesterday, "It's a necessary evil to save the club - there's no other way. I never thought that after 132 years myself and Dave Griffiths would have to take this decision, but it's important that this is done. We played at Luton Town a week ago last Saturday and they have been in administration five times so it's not the end of the world.

"I want to go into administration and pay off all the debts."

Bennett said his hand was forced as Hamilton was prepared to see the club liquidated.

Estimates suggest the club's owner would gain between £8m and £16m if Wrexham's Racecourse home was sold on the open market.

Members of Wrexham Supporters' Trust yesterday backed the move, saying it will give the club the chance to make a fresh start.

Board member of the Supporters' Trust Lindsay Jones said Wrexham fans would be relieved at the decision as it would remove the uncertainty surrounding the club.

"It's the only option I see and I'm sure it was a difficult decision to take," he said, adding the club's survival was the most important consideration, even if it meant the Dragons losing 10 points and being drawn into a relegation battle.

Manager Denis Smith yesterday said the crisis facing the club made it all the more important that fans turned out in force for Saturday's home game against Bristol City.

"I'm still hoping somebody will buy the club and we need people there on Saturday to show it's a club worth buying."

Wrexham has the right to appeal to the Football League against the decision to dock the points, but would have to show it was forced into administration through not fault of its own.

A typical example would be a smaller club going into administration after selling a player to a larger outfit that went into liquidation before paying the transfer fee.

So the likelihood of a successful appeal by the Dragons appears slim.

Prime Minister Tony Blair today wished Wrexham Football Club well after it went into administration but said it was not for the Government to determine how clubs were owned.