LIVERPOOL FC’s owners Tom Hicks and George Gillett were last night closing in on a deal to re- finance their £350m club debt.

Sources said a deal was yet to be reached, but discussions with RBS and American bank Wachovia were “progressing well” over the loan, which expires on July 24.

Last night, Walton MP Peter Kilfoyle, whose constituency includes Anfield, said the part-nationalised bank was letting the people of Liverpool down by extending the finance. Last week, he campaigned for the Government to pull the plug on the £350m loan.

The news that RBS is likely to refinance the loan means that Hicks and Gillett no longer face a possible fire sale of the club or having their assets seized.

The bank is reported to have told the pair it is willing to refinance the loan.

Reports suggested that, over the next six months, the bank will insist on significant payments from Hicks and Gillett.

Last night, Jay McKenna, spokesman for campaign group Spirit of Shankly, said an official at RBS had informed fans that emails would be sent to them to outline the reasoning behind a decision to refinance.

He said: “Our view remains that refinancing would be detrimental to the future of Liverpool Football Club. It will have a negative effect on performance.”

Earlier this month, the full scale of the debt LFC was saddled with was revealed, after the club made a £42.6m loss before tax.

Liverpool FC Limited recorded a pre-tax profit of £10.2m for the year to July 31, 2008, an improvement on the previous year’s loss of £21.7m.

But, despite this, Kop Football Holdings, which owns Liverpool FC Ltd, made a huge loss.

Kop paid bank and overdraft charges of £35.4m, while Liverpool FC Ltd paid £4.7m – making a total of £40.1m debt repayments.

It is understood the owners have put in around £40m cash in the year.