Arsenal Football Club are to form a new company to finance their proposed GBP 100 million stadium, the Sunday Telegraph reports. The new stadium is said to be needed to keep up with Manchester United at the top of English football.

Arsenal Holdings PLC will become the holding company for Arsenal FC with its own independent board of directors, the report says.

The club's annual meeting, usually held in the middle of August, has been delayed until September 7 to allow the necessary paperwork. The scheme has to be approved by at least 75 per cent of the shareholders.

According to Soccernet, the club have denied that this restructuring is a precursor to a stock market floatation.