English club Chester attended a meeting to discuss potential breaches of Welsh restrictions, specifically having over the maximum crowd of 50 at sporting events, alongside Cheshire Police and Cheshire West and Chester Council.
No representatives from the Welsh or English governments were present at the discussion.
Currently members of the National League North, the sixth tier of English football, Chester have carried on playing in front of home crowds as per the English government guidance at the Deva Stadium.
However, North Wales Police have now informed the Blues they should be following Welsh COVID guidance instead, rather than England's.
Despite being an English city, Chester's stadium straddles the Welsh/English border and the ground's seating and pitch actually sit entirely in Wales.
It means those entering the ground from the west of the Deva Stadium, from England, enter into Wales once through the turnstiles.
In a statement released on Friday afternoon on Chester FC's website, the club said:
"This morning Chester Football Club was invited to a meeting with representatives of North Wales Police, Flintshire County Council, Cheshire Police and Cheshire West & Chester Council.
"During this meeting, the Club was given a joint letter on behalf of North Wales Police and Flintshire County Council which outlines potential breaches of Welsh Coronavirus Regulations at our fixtures on 28th December 2021 and 2nd January 2022.
"It also states the Club may commit further potential breaches if it continues to play home fixtures with crowds while the current restrictions in Wales remain in place.
"We were informed this was based upon direction from the Welsh Government that the premises of Chester Football Club are governed by the Welsh Regulations. The Welsh Government was not represented at the meeting.
"It was agreed that all parties would seek further legal advice given the complex issues and future implications of any outcome.
"We will provide a further update to our supporters as soon as we are able to."
There are no restrictions in England on outdoor gatherings and therefore on crowds at sporting events, and the club's offices reside on the Chester side of the border.
However despite this, a representative from the Welsh government has argued that the Blues are just as subject to following their country's Covid guidance as other clubs in Welsh territory.
A Welsh Government spokesperson said: "Chester Football Club's stadium is in Wales therefore Welsh regulations apply.
"The enforcing authorities Flintshire County Council and North Wales Police are dealing with the matter."
A spokesman for Flintshire council declined to comment.
In reaction to the situation, Chester FC chairman Andrew Morris said: "Protecting the health and wellbeing of our supporters, volunteers, staff, players, and the wider community is our priority and, as we have done throughout the COVID-19 pandemic, our club continues to follow the latest guidance from the government, Cheshire West and Chester Council, and the Football Association.
"Throughout the pandemic we have actively engaged with all relevant statutory organisations around the safe facilitation of football and other associated events at the Deva Stadium to ensure we meet local and national requirements and continue to do so."
Chester currently sit 15th in the National League North and are set to face Brackley Town at the Deva Stadium on the 15th of January.