The financial half-year results reveal Arsenal Holdings plc's total net debt has been reduced from £332.8 million to £203.6million - a reduction of £129.2 million.

The club also announced significant progress at Highbury Square, where the sale of 261 apartments raised £96.6 million - an increase of £38.2 million on 2008 - with all the proceeds used to pay off the project's debt. The group's property business recorded a pre-tax profit of £9.3 million.

In the results, the north London club also reveal they have completed the first stage of investment in Emirates Stadium and have reiterated their policy of re-signing first-team players on long-term contracts.

Non-executive chairman Peter Hill-Wood said: "I am pleased to report that the Group has delivered another profitable set of results for the first six months of the financial year.

"There has been remarkable progress at Highbury Square over the last 12 months and it is clear that the next couple of years will see our property activities delivering surplus cash.

"This is very good news, although I would not want to speculate on the exact quantum or timing of this.

"How we will use this surplus remains undecided but, in addition to investing in the team, I think we will examine investment in club projects and infrastructure, both in and around Emirates Stadium, which will provide a long-lasting benefit to the club and our tremendous, loyal supporters.

"Looking ahead, our strong financial base allows us time to take a measured and diligent approach to determining the club's direction beyond our move to Emirates Stadium and into the next phase of growth."

Arsenal sold Emmanuel Adebayor and Kolo Toure to Manchester City last summer and brought in Thomas Vermaelen from Ajax.