Inverness have begun the legal process of moving into administration after failing to secure the funds needed to stave off insolvency.

The William Hill League One side are set to be hit with a 15-point penalty when the move is finalised.

A club statement read: “The directors have signed a Notice of Intention to appoint administrators to be filed at the court.

“We envisage that the proposed administrators will be appointed on Monday or Tuesday.

“A plan is in place to allow the club to continue to trade whilst efforts to secure a long-term future are explored.”

Inverness opened initial talks with administrators several weeks ago after forecasting they would need to find an additional £1.6million to see them through the season.

The Caley Thistle board launched an online fundraising campaign two weeks ago in a bid to plug immediate financial holes but the total income was less than half of the £200,000 target.

The 2015 Scottish Cup winners now face a major battle to survive a second consecutive relegation even if their financial situation can be resolved.

They sit second bottom of the table with nine points ahead of Saturday’s visit of Annan.

Manager Duncan Ferguson has been working for free, having already taken two pay cuts, and the former Everton and Rangers striker this week vowed to fight on for his players if administrators allow it.

Earlier on Friday, Caley Thistle confirmed that takeover talks with Buckie-based businessman David Anderson’s DA Capital had “ended amicably” and they would welcome further discussions “once the club’s financial situation is under control”.