SCUNTHORPE United will have a bigger budget to work with this season than in either of the previous two years they were in League One, the Telegraph can reveal.

That has been confirmed by the club's general manager David Beeby as the Iron continue their attempts to strengthen their squad this summer.

He believes they are on the verge of two more signings, with team boss Alan Knill due back at work tomorrow after a family holiday.

Beeby said: "Talks have been continuing with agents while Alan has been away.

"I think we are very close with one player and quite close with another.

"I would like to think that something might be concluded this week, but knowing the way things work, I wouldn't be surprised if they weren't."

Beeby is just back at United after attending the annual meeting of the Football League in Cyprus where League One clubs agreed to introduce a salary cap for next season, based on projected income.

"League Two have agreed to a new level of 55 per cent," said Beeby.

"A percentage figure has not yet been finalised for League One.

"Neither have the sanctions been agreed yet for clubs in League One who exceed that, such as a transfer embargo."

Beeby is confident United would have no problems falling in line with any salary cap.

Just about all the United players have suffered a cut in their wages on the back of relegation last season.

"The league also have to allow a period of grace for teams coming down from the Championship," said Beeby.

Relegation from the second tier of English football results in a financial loss of £3.7million for each club from loss of television revenue and parachute payments.

"We do get a parachute payment for coming down from the Championship, but it is only £120,000," said Beeby.

But because United have always looked after their finances and seldom splashed out money they could not afford, they are in a strong position to try to win promotion straight back to Championship level just like they did two years ago.

"We have come down in a strong financial position," Beeby continued.

"The budget that we have set for this season is higher than it was for either of the last two seasons that we were in League One.

"That has given the manager some flexibility when it comes to trying to bring in new players.

"We are still able to look in the same areas that we did when we brought the likes of Gary Hooper and Paul Hayes to this club.

"But in Alan Knill we have a manager whose attitude has been a refreshing change.

"He is used to working under financial constraints in his previous job at Bury.

"He treats the money that he has to spend like his own and is careful with what he does with it.

"He always wants to try to get the best possible deal for this club."