The figures, relating to the club's financial year ending in June 2007, is expected to show cutbacks during the past season have improved the Cobblers' deficit from £1.2 million in 2006 to about £700,000 now.

Shareholders have all been notified of the expenses and will discuss the club's financial statement at their AGM later this month.

Anthony Collett, the fans' representatives on the Cobblers' board, said the £500,000 reduction was good news for fans and the club.

He said: "There have been a lot of sensible cut backs and we've improved our performance over the last year. But if we'd seen the side's league position going backwards, there might have been concerns.

"As it is, we've managed to reduce the operating loss without damaging the team's performance.

"It's extremely positive news that we've manage to cut the losses by as much as we have.

"This is good news for fans because it means the club is ultimately more secure and should be safe for the next season.

"It means we are less reliant on owners having to bail us out of financial difficulties. For example, if an owner decided to pull out next season, we would be less at risk because of the sudden withdrawal of financial support."

The latest figures have not yet been made public but have been released to all club shareholders, and some details have been leaked on to the fan website, The Hotel End.

They revealed Northampton Town had cut its losses by about £1 million since the financial year ending in June 2005, when the operating loss reached £1,766,356.

A spokesman for Northampton Town said the club could not comment until the financial statements were discussed at the shareholders' AGM on Friday, May 30.