Heart of Midlothian owner Ann Budge has offered to defer repayment of her £2.5m loan to the Foundation of Hearts (FoH) so it can contribute more cash to the club's stadium upgrade.

The chairwoman and chief executive released a statement on Tuesday outlining the club's funding plans for its revamp of Tynecastle Stadium, including the construction new main stand.

Under the agreement between the FoH and Budge's company Bidco, repayment of the loan is due to start on June 1 this year.

The FoH will take over the running of the club when the loan to Bidco is repaid in full.

Budge has offered the board of FoH to defer repayment of the £2.5m loan for up to two years so the group can continue to provide donations to the club to help with the refurbishment.

Hearts estimate the project will cost £11m, with contingency cash of £1m, meaning the club is working to a budget of £12m.

The club plans to create a larger stand by knocking down the buildings behind the existing main stand to create space to develop the new structure.

The plan is to complete the seating and essential services over next summer in time to open the new stand for the beginning of the 2017/18 season.

Budge says in her statement that the club plans to use £3m from its financial reserves and £3m from commercial and benefactor contributors, leaving a funding gap of £6m.

The club has saved £3m in the past two years and says, by offering the temporary reprieve to FoH in repaying the loan, it can do the same over the next 24 months.

Budge said in her statement: "Clearly, this leaves a potential funding gap of up to £6m. However, I would ask you all to remember this: Over the last two years, with the support of the fans and with sound financial management, we have built up a financial reserve of £3m.

"There is nothing to stop us doing the same again, over the next two years, with your continued support.

"I have made an offer to the FoH board that they can defer repaying the Bidco loan for a period of up to two years, and that all donations made during that period, should continue to be paid to the club.

"This money would be allocated to the new main stand project. At current levels of contribution (£125,000 per month), this would generate £3m.

"At the end of the two-year period, or when £3m has been donated, if earlier, FoH contributions would then revert to repaying the Bidco loan."

She adds: "Assuming contributions continued at today's levels, majority ownership would pass to FOH only eight months later than originally envisaged.

"However, they would be taking over a club with everything in place to ensure financial stability and to position the club for continued growth. It is worth noting that should the number of pledgers increase over this period, the original five-year plan could still be achieved."

Budge has also offered £300,000 of her own money to the stadium project.