Stubbs was involved in the previous bid led by Steve Parkin, which broke down over the level of debt at the club.
"In the interest of fans, players and supporters of Leeds United, the board has decided to continue its negotiations with all interested parties regarding the refinancing of the club," chairman Gerald Krasner said in a statement.
"To date, our lawyers have not had any proof of funds from Nova Financial Partners but if and when any negotiations come to a concrete conclusion a further statement will be made."
Sebastian Sainsbury insisted the hold-up on his bid had been because of a technicality.
"We are proceeding for closing the deal on Friday," he said. "The banks are communicating with the lawyers and we are trying to put something together which requires a huge amount of regulatory approval and documentation. We have confirmed to the board that the money is sitting in a bank ready to do the deal.
"I don't think [the Stubbs bid] is going to be a cash offer, I think it is a mixture of selling Elland Road and cash," added Sainsbury. "I believe we have got the best deal. We have got the best deal on the basis of it being cash and paying off the club's debt."