A financial crisis at the National Football Museum in Preston has prompted talks with Manchester City Council about relocating the museum to Urbis.

The museum's director, Kevin Moore, said the museum no longer had sufficient funds to continue to operate in its current location. "We have been operating on about £750,000 a year. Our budgets have been in decline since 2003 and we do not have the finances to continue beyond December."

A £308,000 grant from the Football Stadia Improvement Fund was withdrawn in March because the money was needed by football clubs. The museum received £105,000 this year from the Department for Culture, Media and Sport, while Lancashire County Council and Preston City Council gave it £25,000 each.

"If the public face of the museum were to move to Manchester, the collections of the museum would remain safely and securely in storage at the current location in Preston, when not on display," said Moore. He added that the Urbis scheme would take the form of a permanent exhibition.

Moore said the museum was in talks with Preston and Lancashire councils about continuing public access to the collection at the Preston site.

But founder chairman of the museum, Bryan Gray, has been quoted in the local press opposing the move. According to an article published in the Lancaster Guardian, Gray said it was "inconceivable" that the museum should leave Preston and called for the existing board to stand down.

The Prospect trade union has also condemned the proposal, warning that a move to Urbis would mean half the staff would face immediate redundancy.

As Museums Journal went to press, nearly 2,000 people had signed a petition on the No.10 website against the museum moving to Manchester.