The company which runs the Ricoh Arena, is no longer trying to buy the part of Coventry City which is in administration.
ITV News Central has been told that Arena Coventry Limited, which is half-owned by Coventry City Council, has not put in a 'best and final' bid.
The company earlier this week put in an indicative bid for Coventry City Ltd but has since pulled out.
Four final offers have been put forward for the company.
Two of those are understood to be the the Sky Blues' current owners Sisu - and American property tycoon Preston Haskell IV.
The sale of Coventry City has been completed, but the Football League still needs to decide on its future
Members of the Sky Blues Trust, a supporters' group, have given a letter to the club's administrator.
Sources at Coventry City say the club is in ‘advanced talks’ with Walsall over plans to temporarily play at Bank's Stadium.