"The club will shortly appoint an interim Chairman to oversee the proposed takeover of the club and ensure the strategic development of the club for the 2010 season and into the future."

However the FAI in a strongly-worded statement said Mr Coughlan was not going far enough.

"Rather than talking of stepping down as Chairman of Cork City FC, Mr Coughlan should immediately relinquish ownership of the club and allow in the parties who have expressed an interest in taking Cork City forward," the statement said.

"These parties made their interest clear to Mr Coughlan many months ago, yet nothing has happened.

"Gestures at the eleventh hour when it could be too late to rectify next season are too little, too late."

Coughlan's move follows a decision by the High Court yesterday to dismiss an action brought by Mr Coughlan, aimed at overturning a FAI decision to suspend him for 12 months from football activities for bringing the game into disrepute.

The original suspension had resulted in a 12-month ban from football-related activities and a €5,000 fine.

It is believed the interim chairman will oversee the potential takeover of Cork City by a local consortium and finalise the club’s application for a league licence.

A club source said Coughlan will consult with the FAI over the appointment of an interim chairman.

The club also face a winding-up order from the Revenue Commissioners next Monday.