The club was relegated on the final day of the League Two season and is now likely to start the new season with a 10-point penalty under Conference rules, similar to those of the Football League.
A club statement read: “Chester City Football Club have decided to enter voluntary administration in order to safeguard the future of the club.”
Martin Shaw of Refresh Recovery has been appointed administrator. He said: "Supporters can be assured that our aim is to find a new owner for the club so that professional football continues to be played in Chester from the start of the new season.
"In order to achieve this we need to find a new buyer able to invest heavily in to the club and then to obtain approval from the clubs creditors to the sale.
"We are already talking to potential purchasers of financial substance and as time is short I would urge any other parties seriously interested in buying the business to make contact with us sooner rather than later.
"Further announcements will only be made when it is appropriate to do so."