The Yorkshire Post report that sources close to Sainsbury are refusing to admit defeat in the bid to buy the club and say a deal could still be finalised before this weekend's home game against Queens Park Rangers.
They are hoping to get the necessary funding into a UK bank account over the next few days. Once that is achieved, Leeds are expected to re-open negotiations.
If Sainsbury is to proceed with his offer, Leeds will have to take into account the loss of the stadium from the package and accept a reduction on the £25m offer.
While Leeds are distancing themselves from the Sainsbury consortium, publicly, they are not in a position to resist if proof of funding is provided.