Supporters group City Fans United (CFU) are determined to create a new phoenix club to rise from the ashes of Chester City FC 2004 Ltd.
The crisis hit club was liquidated in the London High Court yesterday over an unpaid £26,125 tax bill.
Now CFU have are calling on the people of Chester to help them to resurrect the club, starting with discussions with leaders of Cheshire West and Chester Council (CWaC) about use of the Deva Stadium.
CWaC leaders confirmed action was being take to regain control of the Deva Stadium.
Council leader Mike Jones said: “In one respect today’s High Court decision is a sad day for football in Chester. In another, it could well herald the start of an exciting new beginning.
“We are in the process of taking action to secure the imminent return of the stadium to our control.”
Chester MP Christine Russell said: “There is no reason why Chester City FC can’t continue. The way is now clear for the phoenix club.”
Mrs Russell, a member of the all-party Football Group at Westminster, is meeting members on Monday and is planning to talk to both Football Association and Football League officials.
She said: “There are plenty of teams that have had highs and lows. Their fortunes may be at a low ebb at the moment but the fans are 100 per cent behind the club and if discussions can be held between CWaC and CFU, then we can have a club rising from the mire of the Vaughan era.
“Let us hope there is a really positive dialogue between fans and the council and let’s hope there can be a team brought about in the manner of a phoenix club as has been the case with Telford AFC and York City.”
Cllr Jones said: “As we have stated before we are prepared to examine all options put to us to secure the future of football in Chester providing they are accompanied by a sustainable business case.
“We are looking to develop football at the Deva Stadium hopefully with a significant community aspect involved.”
Barrie Hipkiss, lifelong fan and former chairman of the Official Chester City FC supporters group, described events as the “saddest day in the history of Chester City FC” but called on fans to rally in the bid to create a phoenix club.
Mr Hipkiss said: “Today we have witnessed 125 years of history broken and indeed it is a very sad.
“The club is at its lowest point and cold not go any lower but now the only way is up. Hopefully Chester City can rise out of the ashes.
“Even though this news is something the fans had been expecting, it is still a shock. It is hard to think the entire club’s history has been broken due to neglect.
“Stephen Vaughan could have released the club a lot sooner and maybe given someone else the chance to step in and save the club before it was too late but that was not to be. Now, as fans, we have to keep our chins up, carry on and work hard to bring a football club back to Chester.
“We just hope now the ground can be retained and a phoenix club can be brought about.”