Uncertainly continues around the need to build a football stadium near Kenilworth as Coventry City Football Club has announced a new short-term licence agreement with Frasers Group to continue to play home games at the Coventry Building Society Arena.

The announcement will ensure the Sky Blues stay at their current home ground until at least May - subject to EFL approval - after the stadium's new owners had served them with an eviction notice on December 2.

The club had a ten-year agreement in place with former owners Wasps which became null and void when the stadium went into administration.

CCFC apparently turned down fresh terms offered by Mike Ashley's Fraser Group - the new stadium owners.

The club says it will now enter fresh talks over a new long-term deal.

A statement issued last night (December 12) said: "Coventry City Football Club is pleased to confirm that it has signed a new licence agreement with Frasers Group in order for the Club to continue to play home games at the Coventry Building Society Arena.

"This represents a positive step forward for the club and its fans and we now look forward to establishing a constructive working relationship with Frasers Group.

"The licence that we have today signed will run until May 2023 and is subject to EFL approval, which we expect to be granted on Tuesday.

"Coventry City will now commence amicable talks with Frasers Group with a view to agreeing a longer-term licence for the Club to play at the arena." 

However, with the club missing out on buying the arena outright following its last-minute bid, questions still remain over whether it intends to build a new stadium elsewhere in the city.

The Sky Blues have announced plans with the University of Warwick to build a new stadium which will also form part of a proposed eco-park.

However, a planning application for the development is yet to be submitted, and the possible need for it has changed much over the past few weeks.