Portpin - the company run by former Portsmouth FC owner Balram Chainrai - say its suspended its bid to buy the financially troubled club. It comes three weeks after administrators named the Portsmouth Supporters Trust as the preferred bidder.
In a statement, Mr Chainrai argues sale of the club has taken too long, with administration costs mounting every week. The Hong Kong businessman also said that Portpin's bid is still the best one left on the table. Portsmouth are around £61m in debt and have been in administration since February.
Mr Chainrai - who is owed £17m by Pompey - was in control of the club in 2010 when it went into administration for the first time. It's also been a bad week for the club after Pompey manager Michael Appleton left to take over at Blackpool.
Balu Chainrai of Portpin says: "Our discussions with the Football League have been positive and are progressing. As far as we are aware we have satisfied the majority of the criteria and we expect now to work through the last remaining points with the Football League in the coming days.
"We are very confident that we are in a position to complete the acquisition of Portsmouth Football club in the near future."
The Football League has failed to approve a bid for Portsmouth Football Club made by former owner Balram Chainrai's firm 'Portpin'.
The way could now be clear for the Pompey Supporters' Trust to take over the side - which is currently in administration.
The fans of Portsmouth Football Club have given one last rallying cry for support as the club enters what could be its final week before liquidation. Administrator Trevor Birch has confirmed a deadline of next Friday - when - unless a deal has been done - the club will fold.
The Pompey Supporters Trust today revealed details of its bid - and announced the man who'd be their chairman. Click below for Sarah Gomme's report
The fans of Portsmouth Football Club who have put forward a bid to save the team from liquidation have today confirmed who would become their new chairman - local businessman and lifelong Pompey fan Iain McInness.
Today he appealed to fans to back the bid which hopes to prevent the club from going under. Administrator Trevor Birch has given a deadline of next Friday.
The Trust's bid is one of two currently on the table - the second comes from Portpin, the company belonging to former owner Balran Chanrai. Negotiations continue with three remaining senior players who need to be off the clubs books in order for any bid to be successful.
The Portsmouth Supporters Trust will reveal the final details of their bid to buy Portsmouth Football Club later today.
Administrator Trevor Birch is also considering an offer from the club's previous owner Balram Chainrai.
Mr Chainrai recently warned Pompey’s top earners that if they don't strike a deal over pay the club will fold.