THE cash crisis hanging over Warrington Wolves has been given a stay-of-execution thanks to news of a massive loan and three-way partnership.

Rugby club bosses are celebrating after Tesco and Carlsberg Tetley agreed, in principle, to loan the club £250,000 each, which in conjunction with a council loan of £200,000, will alleviate their short-term money worries. The cash is dependent on the club's accounts and business plan being made available to the companies.

And subject to legal advice, Tesco has also agreed to drop a planning application for housing and a store, which was causing headaches for council chiefs as it was due to be discussed side-by-side with the stadium plans at the forthcoming public inquiry.

As reported exclusively in the Guardian, Warrington Borough Council agreed to loan the Wolves £200,000, but only if the two companies did the same. Tesco is linked with the Wolves through the stadium planning application, while Carlsberg Tetley is the proposed site's landowner, as well as being the club's principal sponsor.

And after weeks of uncertainty, town leaders finally have the decision they were waiting for - though official confirmation is not expected until the end of the week.

Council chief executive Steven Broomhead, council leader John Gartside and Wolves chairman Lord Hoyle met with representatives of the two companies' boards on Tuesday and say they are confident the matter is now resolved.

"It was a very positive meeting," said Lord Hoyle, "and important because it was the first time the three partners have got together.

"We were able to discuss the forthcoming inquiry as well as put forward the need for finances to keep us going.

"This loan means a lot to the club. We had budgeted on the public inquiry having gone straight through and we thought that in 12 months we would have been in the new stadium and attracted new funds. We have got to keep the club going and pay the players and the staff."

And, though he was conscious the details still had to be confirmed, Clr Gartside said: "I'm very pleased because it illustrates the companies wider interest in the town and shows that they can see the benefits of the stadium."

In reaction to Tesco's decision to drop the planning application for a store and housing, Clr Gartside added: "It shows their commitment to the town.

"And I'm pleased because it simplifies the issues and shows they are serious about building the stadium."