YORK City chairman Douglas Craig today confirmed he was in talks with potential new owners of the Minstermen.

The revelation came after over 1,000 City fans marched through the streets of York in a show of support for the threatened club before the home match against Torquay on Saturday.

Mr Craig, who last week denied any talks had been held, said: "There are ongoing discussions with two or three interested parties. The people I am having discussions with do not wish their identities to be revealed."

But he was adamant no deal had yet been struck, nor was one imminent.

He said: "I have had talks with people and there has been an exchange of correspondence, yes. But there is a lot of work to be done, if we ever get there."

He added that there might be "dark horses" among eight parties who have so far expressed an interest in the club.

Mr Craig also said the initial deadline for expressions of interest - Thursday, January 17 - does not have to be strictly adhered to.

However, he insisted there would be no extension beyond March 31, the date by which an agreement with any new owner must be sealed.

If no agreement has been reached by then, the club - which has already given provisional notice of its intent - will withdraw its membership of the Football League.

City of York Council is also hoping to get potential buyers round the table on Wednesday with the Save City Committee, which is determined to form a Supporters' Trust to run the club.

Meanwhile, the City chairman seemed to pull back from his threat to close the club down by February should supporters do anything that could damage the club's finances.

Saturday's one-man pitch invasion and three arrests after the game would not be likely to lead to FA sanctions.

"There was not enough to cause a problem with the FA," he said.

The club's board is looking for new owners and has also put the ground up for sale with a £4.5 million price tag.

"Bootham Crescent, here to stay" was the rallying cry for the supporters who blazed a trail of red through the streets in Saturday's march.

An effigy of Mr Craig was paraded by fans along the route and later in the ground to shouts of "Judas".

Fans also vented their anger at board member and former City favourite Barry Swallow, who was not at the match.

Police made three arrests after about 150 supporters gathered in the club car park at full time to demand Mr Craig address them.

Coins were thrown at the window, a man and a woman were arrested in the car park and another man was arrested when he invaded the pitch.

A man has been charged with a public order offence and is due to appear before York magistrates tomorrow.

But Inspector Jim Breen, of York Police, praised the dignity and conduct of City supporters throughout the day.

"It's a pity it ended in a bit of a scuffle," he said.

Banner-carrying supporters, several of whom were representing Torquay United and other clubs, had gathered at the Eye of York before heading off down Coney Street - snaking the length of the popular shopping thoroughfare.

Tourists and shoppers stepped aside as the peaceful but noisy march - which included Shed Seven frontman Rick Witter and Mr Swallow's former defensive partner, Chris Topping - went through the heart of the city centre.

Staff stood at the front of stores clapping, and drinkers gathered outside pubs to cheer.

By the time it ended at Bootham Crescent, the marchers had been joined by hundreds more loyal fans shouting "traitor" and "we love you City".

At half-time, supporters waved £10 notes at Mr Craig, who was sitting in the Main Stand.

About £4,700 was raised for the new Supporters' Committee through a collection.

March organiser Greg Stone said: "I'm thrilled with the turnout. It has been a peaceful but enthusiastic expression of the fans' commitment to the club.

"There is solidarity among all these fans - who are the true owners of the team. We just hope people sit up and listen."

Updated: 11:48 Monday, January 14, 2002