Town have confirmed that they have accepted a bid of £750,000 for skipper Matt Holland. Club chairman David Sheepshanks has admitted that he is disappointed in the price, but says that the fee is the best the club has been able to achieve.
Reports of Porsmouth interest first surfaced back in May but the story really started to move on this morning. By lunchtime both Pompey owner and Holland's agent Jonathan Barnett had confirmed that negotiations were taking place.
Sheepshanks says the club have little choice but to accept the offer: "As I think has been well understood by our supporters over recent weeks, most regrettably and reluctantly, we have been obliged to consider the transfer opportunities for our much admired and outstanding captain Matt Holland.
"For any club outside the Premiership, it is not just about transfer fees but also the size of wage commitments. Matt Holland was not on huge money by Premier League standards, but nevertheless on a level that is simply unaffordable in the First Division.
"The state of the transfer market is such that while there is interest in a player of Matt's pedigree, the very best fee that we have been able to obtain is £750,000 from Portsmouth.
"This is particularly tough to digest when a year ago much higher values were being spoken of, and indeed in August 2002 we agreed a sale to Aston Villa for £4 million.
"It is now up to Matt to discuss personal terms with Portsmouth. Clearly if he decides to go he will be a huge loss but by the same token we have every confidence in Joe Royle being able to replace Matt in the team and build his Ipswich Town side for the future."
Royle has said he will aim to replace players who leave over the summer and if Holland goes it is likely that a midfielder will be added to Royle's target list along with a goalkeeper
Central defender Drissa Diallo is expected to become Royle's first signing, perhaps as soon as tomorrow, with confirmation of the lifting of Town's transfer embargo likely later today.