BBC Radio Leeds say negotiations had been held between Leeds directors and a new group headed by Yorkshire businessman Steve Parkin, but it now appears the deal will not now go through.
Chairman Gerald Krasner believes this takeover is not in the club's best interest.
Parkin would have brought in new directors if he had gained control of the club, with Krasner and managing director David Richmond stepping down from their current positions.
The news of the takeover bid came just 24 hours after former Bradford City chairman Geoffrey Richmond ended his involvement with the club.