In an unprecedented move aimed at staving off a deepening financial crisis, the club will ask members to approve the overdraft increase from its current level of £5m.

Rising costs of Headingley's redevelopment and the fall in the stock market value of the club's investments are blamed for the need to borrow more. An extraordinary general meeting is planned for August 29 when the club's committee will put the proposal to members. But it is thought many will question the financial wisdom of such a move at a time when the club faces cuts to cricket spending.

According to club rules, approved at the 1999 annual meeting, "the total amount outstanding from time to time in respect of any borrowed money shall not, without the previous authority of the members in general meeting, exceed the sum of £5m". Members will be officially told by letter in the next few days of the meeting at Headingley Cricket Centre, at 10am.

An accompanying note to members from the club reads: "The ground redevelopment proposals approved in September 2000 indicated a bank funding requirement of £3.8m in addition to £1m of the club's own funds. The recent fall in the stock market has necessitated a re-think in respect of the planned realisation of the club's investment portfolio and it will therefore be prudent to defer the sale of investments until the market has recovered."

It adds that project costs, put at £9.85m in September 2000, have risen to £11.86m because of more safety requirements imposed by Leeds City Council and Sport England.

The club had hoped to wait until the next annual meeting next March to ask for an increase in borrowing powers.

But its current limit has nearly been reached as some of the grant funding has been held back until later this year.

Last night Mr Smith said: "If we do not get approval we will run out of money and will be unable to complete the ground redevelopment, but I have every confidence in the good sense of the membership."

But member Brian White said: "This would be all very well if we could have any confidence in the financial competence of the club, but some of us don't and all the recent evidence supports our case."