The battle to take control of Manchester City is beginning to gather pace after the club announced to the Stock Exchange that "it remained in preliminary discussions with external parties".

It is understood four groups of investors, including one from the USA, are competing against each other.

City revealed before Christmas they were seeking fresh investment in the club but today's statement suggests some progress has being made since then.

It read: "The board of Manchester City notes the recent press speculation regarding the possibility of an offer being made for the company.

"Further to the company's announcement on December 7 2006, the board of Manchester City confirms that it remains in preliminary discussions with third parties that may or may not lead to an offer being made for the company.

"A further announcement will be made in due course as appropriate."

The key to any deal would be the agreement of chairman John Wardle and his business partner David Makin, who between them own 29.75per cent of the shares but also have £21million in outstanding loans to the club.

The next largest shareholders after Wardle and Makin are Mark Boler (18.75 per cent), BSkyB (9.9 per cent) and Francis Lee (7 per cent+).

Wardle has made it perfectly clear that the club must remain in good hands.

If he and Makin did step down, then it is understood the newcomers would invest heavily in City but could end up financing a full £70million takeover.

That could mean a boost for manager Stuart Pearce as he attempts to strengthen his squad.