Cornwall Council is considering stumping up £10,000 to keep Truro City Football Club (TCFC) from going out of business.
The cash-strapped club needs to come up with a £50,000 bond by 5pm today or it will be thrown out of the Football Conference.
The lawyer working on a deal to save the club said the future of Truro City was hanging in the balance.
The club went into administration following the bankruptcy of the former chairman, Kevin Heaney.
James Moore, a solicitor advising administrators Walsh Taylor, said: "Cornwall Council has agreed to support us with £10,000."
Mr Moore said administrators were dealing with two other interested parties who would contribute the other £40,000 or the entire £50,000.
He said: "This morning I would have said chances of survival were 70-80 per cent against but things have moved this morning and it's all in the balance."
A spokesman for Cornwall Council said: "Cornwall Council has been talking to the administrators about how the council may possibly assist TCFC and is currently considering their formal request outlining what kind of support they want the council to provide."