The UK Department for Digital, Culture, Media and Sport said it had agreed with a request from club directors to place Worcester into administration.
“We understand the past few months have been difficult for the players, staff and fans of Worcester Warriors Rugby Football Club,” a DCMS spokesperson said.
“We have worked around the clock with the club’s directors, the PRL [Premiership Rugby] and the RFU to explore all possible options, but during this time the owners have been unable to secure new investment for the club.
“In order to give the club the best possible chance of survival, and to protect a significant taxpayer investment, we have today agreed to the directors’ request to place the club into administration.
“We will now apply to the court to appoint administrators and will begin work to explore all possible options to protect creditors and preserve the local rugby offering in Worcester.”
The move comes after the Warriors were suspended from all competitions with immediate effect after they failed to meet a Rugby Football Union deadline requesting proof of insurance cover and funding for the club’s monthly payroll.
The RFU also wanted evidence of a “credible plan to take the club forward” by 5pm on Monday.
But the crisis-hit Warriors have not responded to those requests, and their season has now been plunged into cold storage, with Worcester men’s and women’s teams both suspended.
Worcester are burdened by debts totalling more than £25million, including at least £6m in unpaid tax, amid growing anger felt towards owners Colin Goldring and Jason Whittingham, who have been accused of asset-stripping the club.