Bath City and TeamBath had been discussing the possibility of merging at the end of the season, it has been revealed.

City chairman Geoff Todd confirmed that negotiations had taken place between the Twerton Park landlords and tenants with the aim of forming one club.

But those talks were abruptly ended last week when TeamBath decided to quit Blue Square South after Conference chiefs ruled the club could not win promotion to its Premier Division in its current format.

In a letter to the Chronicle, which you can read here, Todd revealed: "After the announcement that TeamBath are to fold, I can reveal that myself and managing director Paul Williams had discussed with them the possibility of a merger, with the aim of forming one club capable of taking Bath into the Football League.

"Because of league competition rules, it was decided that, until this season's fixtures had been completed, it was inappropriate to put this in the public domain until all details had been discussed."

The demise of TeamBath has major implications for Bath City, whose playing budget may need to be cut again as a result of the loss of groundshare revenue.

Under the terms of the four-and-a-half year agreement, which expires at the end of the season, City have not only received rent from TeamBath but benefited from the use of top-class training facilities at the university twice a week.

Managing director Williams, who expects City to lose 'tens of thousands of pounds' as a result, had been involved in talks with TeamBath secretary Phil Searle over the extension of the Twerton Park lease until last week.

He said: "We weren't expecting this decision – I was still talking to TeamBath last Tuesday afternoon.

"It will reduce our income and any reduction in income will obviously have an affect on our expenditure.

"Wages – including players' wages – are our largest overhead and unless that income can be replaced by some other source then there will be less money to spend.

"We haven't had to look at training facilities for five years and I dread to think what the cost might be now."

Ged Roddy, director of sport at the University of Bath and TeamBath FC manager, said: "TeamBath FC has been an ambitious club and our long-term goal has always been to secure a place in the Football League.

"Unfortunately, the letter from the Blue Square Conference said that no further promotions would be possible for us, thereby denying us the opportunity to progress.

"Our dream has always been to promote a student football team into the Football League and in effect the Conference's decision means the club has gone as far as it can go without making significant changes to its structure.

"As a trailblazer for university sport, TeamBath FC is unique and we feel that its structure has served us well and is a fitting and robust model for the 21st century. As a result, we don't want to change that model.

"We would like to thank the FA and particularly the Somerset FA for the outstanding support they have given over the years.

"It is particularly disappointing that as a result of the board of the Conference's decision, we will have to give up our hard-fought membership of FA Cup competitions," he added.