The council confirmed today that it has led a consortium bidding to buy the club for the city. The football club was put up for sale earlier this month by the current club board and chairman Douglas Craig.
But the council has been told that Mr Craig is seriously considering offers from other bidders.
Councillor Alan Jones, the council's executive member for leisure and heritage, said, "We have been involved in talks with a number of interested parties and formed a consortium which made an offer to take over the club and secure its future at Bootham Crescent.
"Naturally we are disappointed to learn that our consortium offer has been rejected but it is still on the table and we will not walk away.
"We have said all along that City of York Council values having professional sport in the city and we are hopeful that any deal Mr Craig is now pursuing will be in the long term interests of York City AFC and its supporters. In the meantime we will continue to monitor the situation and offer practical support to all those concerned about the club's future."
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