LEEDS United's desperate struggle to stave off administration could hinge on reaching a compromise deal with Middlesbrough over Danny Mills' proposed move to the Riverside.

The Elland Road club, over £80m in debt, are working frantically to raise £5m before tomorrow's 5pm deadline on the extension of their "standstill agreement'' with creditors.

Boro, who signed right-back Mills on a season's loan last August, want to make the deal permanent and are reported to be only prepared to offer around £500,000 - a third of Leeds' asking price.

But every indication points to the clubs meeting each other half way and a £1m deal being agreed, possibly before their Premiership fixture at Elland Road on Saturday.

If not, they could thrash out a deal for the 26-year-old England international on the day of the game before completing the formalties ahead of the transfer deadline, which has been extended to 5pm on Monday because of administrative considerations.

With Premiership chairmen prepared to discuss severe penalties - such as a nine-point deduction - for clubs going into administration, Leeds are anxious to tie up a deal for Mills by tomorrow to help them reach their £5m target and secure a rescue package.

A Yorkshire-based consortium has put together a £20m bid for the crisis-torn club. It is understood that chief executive Trevor Birch was meeting creditors yesterday before heading for the monthly meeting of Premier League chairmen.

Firm evidence that funding will be in place could lead to a further week's extension until February 6.

To that end, Leeds were boosted yesterday when Manchester United agreed to pay a £1.5m final instalment on Rio Ferdinand's move to Old Trafford in 2002.

Man. United handed over an initial payment of £15m and a further instalment of £14.3m was paid a year later, but the fee was structured so that the total could eventually have amounted to £32.5m.

However, Leeds' plight is such that they have effectively written off £1.75m in the long-term by accepting £1.5m up front to boost their fighting fund.

"Manchester United have agreed to pay Leeds United, via the FA Premier League, £1.5m in full and final settlement of the deferred conditional sums due on the Rio Ferdinand transfer totalling £3.25m,'' Manchester United confirmed in a statement to the Stock Exchange. "A levy of £75,000 is also payable to the FA Premier League.''

Relegation-threatened Leeds have been forced to accept the settlement as they attempt to manage crippling debts.

This time last year they reluctantly sold star defender Jonathan Woodgate to Newcastle for £9m as their cash-flow problems hit hard.

Now they are keen to keep together the bulk of a squad assembled to such disastrous financial effect by former boss David O'Leary under then-chairman Peter Ridsdale.

They have already rejected an offer from Tottenham for goalkeeper Paul Robinson and talented youngster James Milner, while Newcastle's interest in striker Alan Smith has so far been rebuffed. But the sale of Mills may now be critical.

One of the alternatives already discussed to ease Leeds' problems is asking the players to agree to a wage deferral scheme similar to the one adopted by Sunderland.

The Leeds playing staff have reacted angrily to claims that they refused to help their club when the move was suggested, and fans' favourite David Batty issued a personal message to the supporters to dismiss suggestions that he had led a rebellion.

"The fans should know that myself, in particular, and the Leeds players would never risk the future of Leeds United, least of all for personal gain,'' he said in a statement on the club's official website.

"I feel certain people have taken our decision to delay wage deferrals as an opportunity to shift blame, and have in turn waged a character assassination campaign against me and a few players to turn the fans against the team.

"I can assure you of my best efforts at all times. I have never given any less than 100 per cent to Leeds United and finally, none of the lads has ever said he wouldn't take a wage deferral.''

Read more about Middlesbrough here.