Hull have denied reports they are considering going into administration, insisting "there are no plans or intentions to enter into any form of insolvency process".
The Tigers' relegation from the Barclays Premier League was all but confirmed with Saturday's 1-0 defeat to Sunderland and the drop in revenue will have a major impact on the club which is already £35million in debt. However, the club are confident they will not be forced into administration.
"The consequences of relegation have a material impact on the revenues of the football club and, as has been widely reported, the Board have been meeting to discuss the management of the transition from the Premier League to the Championship," read a statement released on Thursday morning. "This should not be surprising and there are no plans or intentions for Hull City to enter into any form of insolvency process."
It continued: "The main focus at this point in time is on the remaining two fixtures of the current season in order to try to secure an 18th place finish, and to continue business and operations as normal."
Hull's debts spiralled out of control following their promotion to the top flight for the first time in their history in 2008.
Former chairman Paul Duffen resigned in October following a damaging report from auditors which questioned the club's ability to continue as a going concern.
The Tigers tried with little success to offload a number of fringe players in the January transfer window and reducing a crippling wage bill of a reported £39million will now be top priority.
Hull owner, Russell Bartlett, added: "It is obviously very disappointing for everyone at the club to have been relegated.
"As we had anticipated, we will need to reduce our outgoings to a level that is sustainable over the longer term.
"The management is working flat out to achieve this objective and I am very impressed with the commitment being shown by our staff."