Portsmouth have confirmed that defender Tal Ben-Haim has left the club, with administrators "cautiously optimistic" of avoiding liquidation ahead of Friday's deadline to save the club.
With an announcement over the future of Liam Lawrence, the last senior player on Portsmouth's books, expected within the next 24 hours, the only remaining issue is reaching an agreement over compensation with the departed Kanu.
With Birch having previously spoken of the need to get senior players off the wage-bill to avoid liquidation, talks can now commence with former owner Balram Chainrai's company Portpin over a possible takeover.
In a statement, administrator Trevor Birch said: "I am pleased to announce we have reached a compromise agreement with Tal Ben Haim, who will now leave the club.
"We expect to make an announcement on Liam Lawrence's future later and, whilst the situation with Kanu has not yet been resolved, we are cautiously optimistic about our prospects.
"The progress we have made over the past 24 hours means there is now a much better prospect of meeting the conditions of the CVA (company voluntary agreement), completing the sale of the club and avoiding liquidation.
"As a result, we will now push on with our negotiations with Portpin, with a view to finalising a deal in the next few days. There is still more to do, and the club's future is not yet guaranteed, but we're in a stronger position and will now take some additional time to try to conclude matters.''
With just a week remaining until the start of the season, manager Michael Appleton finds himself working with a squad composed of youth players and trialists, but added: "My gut instinct is that the club will be fine".