Canvey Island are set to confirm their resignation from the Conference in the next week, reports BBC Essex.
The Gulls were stunned in April when manager and major backer Jeff King said he would withdraw his investment.
After a meeting on Thursday to discuss the future of the club, reserve team coach John Batch was appointed manager and a limited company has been set-up.
"Dreams of staying in the Conference have to be forgotten about," supporters liaison officer Glenn Eckitt said.
"The majority of next season's team will be made up of our title-winning reserve side. It would be unfair to go into a league where we can't compete."
If Canvey do withdraw, it could mean a reprieve for Tamworth, who finished second-bottom in the Conference and are set to drop into the Conference South.
Scarborough the other relegated club are awaiting the outcome of Altrincham's appeal against an 18-point penalty for fielding an ineligible player.
Eckitt added: "We now have to apply to the FA and our preferred route would be step eight which is the Southern League East or Ryman Division One.
"That's what we'd like but obviously it's down to the FA.
"If we could get into the Southern League East that would bring back derbies with Aveley, Hornchurch and other Essex clubs but I have to stress it isn't our decision."
If Canvey do resign from the Conference, they have to confirm the situation by 13 May.