Morsley met with directors on Tuesday night to discuss the budget for next season, and it is understood that no agreement was reached.

Morsley has made it clear in recent weeks that he believes a bigger squad is needed for next season if AFC are to build on the promotion near-misses of the past two years.

Injuries hit the club badly over the closing weeks of the season, which saw the team lose five of its seven matches in April, including the promotion play-off semi-final against Canvey Island.

Morsley declined to comment yesterday, and chairman Keith Morris said rumours of the manager's resignation were "news to me".

Morris did confirm that the directors were meeting last night and that the budget for 2008-9 was high on the agenda.

Morsley had been planning contract talks with the players over the next few weeks, in a bid to get the squad for next season settled.

He had hoped to complete this task in time for the club's presentation evening on May 30, which may now go ahead without him.