Birmingham City have terminated discussions with Hong Kong businessman Carson Yeung about a potential takeover of the club.
Mr Yeung, operating as the head of a company known as Grandtop International, will fail to meet a deadline of December 21st to purchase the rest of the shares he needs to buy the club, according to shareholder David Sullivan.
After making an approach to the club's directors in June, Mr Yeung signalled his intent to purchase Blues using his own personal wealth.
However, the club claims, it later emerged Mr Yeung would have to raise the capital needed to purchase the Premier League outfit and would operate under Grandtop, who are listed on the Hong Kong exchange.
In a statement to the London Stock Exchange this morning, Birmingham City said it was calling a halt to the planned takeover because of delays on the part of the club's potential investor and a breakdown in the relationship.
"The company announces that it has terminated discussions with Grandtop International Holdings (GIH) as the directors are no longer confident that GIH will be able to make a general offer for the company," the statement read.
"The directors confirm that they are not in discussions with any other potential offerors for the company."
In a separate statement, Mr Sullivan said he would "draw a line under the whole sorry affair" and vowed to reaffirm his own position on the club's board by upping his overall shareholding.
"I will not only honour the pledge not to extend the deadline, but over the next few months it is my intention to show my commitment to the club by increasing my shareholding to 29.9 per cent - the maximum allowed by the stock market without making a full bid for the club," Mr Sullivan said.
He claims his "enthusiasm for the club is renewed" after the successful appointment of former Scotland boss Alex McLeish as a replacement manager for Steve Bruce, who had felt uneasy about the takeover.
"I have not felt this inspired and happy at the club for a very long time," Mr Sullivan continued.
"I sense the same feelings from our supporters.
"The future looks bright for the club, and by working together with the new manager we will get the results and ensure the club retains it Premier League status.
"The board and I have drawn a line under the Carson Yeung/Grandtop saga and as we promised we will remain in place to ensure the club continues to go from strength to strength."