Coventry have confirmed they held a "highly constructive" meeting with the city council as they explore ways to strengthen the club's financial situation following relegation to npower League One.
The cash-strapped club are tenants at the Ricoh Arena, which is jointly owned by the council and Alan Higgs charity and managed by Arena Coventry Limited, but have reportedly not paid their £100,000 rent for the past two months.
A statement on the club's official website read: "Representatives including SISU's Joy Seppala held a highly constructive meeting with Coventry City Council leader John Mutton, deputy leader George Duggins and chief executive Martin Reeves to discuss the club's tenancy at the Ricoh Arena and to explore different options for moving forward."
Coventry are keen to lower the £1.2million annual figure and be able to bring in other matchday revenues, and they will continue to hold formal discussions with the council over the coming week as they look to resolve the stand-off.
The statement explained that the football club and its owners SISU are continuing their extensive work to restructure the club's finances following relegation to League One.
It said: "The club has committed to providing the city council with further details of its plans for next season and discussions with the city council are expected to continue over the course of the next week."