York City will release Gary Pearson if the midfielder accepts a financial settlement over the remainder of his Minstermen contract.
Pearson's current deal expires this summer but manager Billy McEwan believes it will be in the best interests of both the player and club if his situation is resolved sooner.
The former Darlington player is still receiving treatment on a shoulder injury, meaning the City manager is unlikely to see him in action before the end of the season.
McEwan said: "We are offering Gary Pearson a financial settlement because he's driving from his home in the north east to get treatment here three or four times a week and, to me, that's not fair on him.
"I can't offer him anything because I won't be able to see him play but he won't lose out financially. We will look after him and he's having a little think about it."
Pearson, 28, injured his shoulder in October's 4-0 drubbing at Barnet.
He returned for one match - the 3-1 home defeat to Forest Green Rovers that led to Chris Brass' removal as player-manager - but has been sidelined ever since, failing to feature under caretaker boss Viv Busby or McEwan.
Pearson was red-carded for two bookable offences on his City debut against Aldershot at the start of the season.
Beginning his Minstermen career as a midfielder, he was used as a centre-back before being injured and has made just 14 appearances this season after signing last summer on a free transfer from Darlington.
Pearson is one of 16 City players with first-team experience who will be out of contract this summer.
Only Andy Bishop, Chris Brass, Steve Davis, Darren Dunning and Chris Porter have deals beyond the end of this season.
Otherwise, decisions will be made by McEwan over the futures of current first-team regulars Dave Merris, Kevin Donovan, Paul Groves, Paul D Robinson, Shaun Smith and Graeme Law, as well as squad members David Stockdale, Lev Yalcin, Sean Davies, Bryan Stewart, Paul Robinson, Matthew Coad, Kane Ashcroft, Adam Arthur and Robbie Haw.
The City boss said: "It's up to the players to prove they want to stay here with their performances between now and the end of the season."
York City's social club will be open from 6pm on Monday night for fans wanting to watch City's Sky-televised away match against Halifax at The Shay on the big screen.
Updated: 10:15 Saturday, March 12, 2005
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