Watford have been handed a lifeline to resolve their financial peril by former chairman Jimmy Russo.

The Hornets looked set to be forced into administration after Russo and brother Vince, the club's former vice-chairman, rejected a £7.5million rights-issue package from majority shareholder Lord Michael Ashcroft on Wednesday. Russo, who resigned on Tuesday, had insisted the club must pay back the £4.88million he lent the club.

But he has since told BBC Radio Five Live: "I'm happy to suspend any legal action providing I have an appointment with them."

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