Local property developer Simon Morris had also been in the running to buy the troubled League One side but administrators KPMG decided that Bates's unconditional offer "represents the best result for creditors".

Joint administrator Richard Fleming said Wednesday: "We received several offers for the business which we considered carefully.

"The approved deal represents the best result for creditors in the circumstances and we believe provides the club with the best chance of survival," he added.

KPMG put Leeds on the market on Friday after club chairman Bates's attempt to buy back the club was challenged in the High Court by the Inland Revenue, who say they are owed 7.7 million pounds (10.5 million dollars) in unpaid taxes.

Morris and London-based investment firm Redbus Group, headed by Simon Franks, had submitted a joint bid, but Bates resubmitted his offer and it is the former Chelsea chairman who has won out.

The High Court postponed a decision on the Revenue's appeal until September 3 but with the new season starting in five weeks, KPMG put Leeds up for sale.

Bates placed United in administration on May 4 when it was revealed the club had debts of 35 million pounds.

Leeds, one of the dominant teams in English football in the early 1970s, were relegated from the second-tier Championship last season. The forthcoming season will be the first time it has played outside England's top two divisions in its history.

It is only 15 years since Leeds won English football's top flight title and only six years since they reached the Champions League semi-finals, but under the regime of then-chairman Peter Ridsdale they ran up debts of about 100 million pounds.

Bates told Sky Sports News: "It's a sense of achievement and a challenge.

"Leeds were in a mess when we took over -- the Peter Ridsdale era and the last board were incompetent.

"But now we've got a clean start and a clean sheet of paper.

"It's a big club -- it's not at the moment but it will be -- and we can take it forward.

"And part of the reason why we're going to succeed is because these Leeds fans are absolutely magnificent."