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Leeds chairman Gerald Krasner is refusing to give up the fight despite admitting "administration will happen" after Sebastien Sainsbury's proposed takeover finally collapsed.
With the £25million buy-out in tatters Leeds stand on the brink of administration, potentially within the next three months.
However, Krasner is determined to hold things together.
When asked whether Sainsbury's decision meant administration was now around the corner for Leeds, Krasner, said: "Eventually it will happen.
"It is not going to happen today or tomorrow but unless something positive happens [with another investor], it will happen."
He told The Independent's online edition: "The financial situation has not been good since day one.
"But having reduced the debts from £104million to less than £25million, we are not going to give up."
The reason for the failure of Sainsbury's bid is the reason the Elland Road club are in such dire straits - the high level of debt.
Although losses have been slashed from £104million to £25million in 10 months, the club is expected to lose £10million between now and the end of the season.
Anyone staging a takeover bid - and Leeds-based property developer Norman Stubbs is the only interested party left - would have to find £40million.
There is not that sort of money washing around for Championship clubs but despite those developments, Sainsbury has still not given up hope of coming to Leeds' rescue.
"We never had all our eggs in one basket and we do have a possible contingency plan," he said.
"Over the next 24 hours we shall be considering our options, but I have developed a real affection for this football club and I still hope there is a way to save Leeds United.
"There is no way I want to see it go into administration, but should that happen I will not try to rescue it.
"I want to make it clear it has always been a case of Leeds or nothing for me. I will not be bidding for any other club."
The prospect remains, however, of Leeds falling into administration, or even facing a winding-up order, which would result in an automatic 10-point deduction by the Football League and with it a battle to avoid relegation from the Coca-Cola Championship.
Leeds will now be desperate to do a deal with either Chelsea or Liverpool for young goalkeeper Scott Carson.
The club have met representatives from both sides over the last 24 hours and although no deal has been finalised Leeds could push through a transfer as they are in need of the funds it would bring.
Leeds manager Kevin Blackwell is refusing to contemplate the threat of administration, which would throw the club's season into turmoil.
Krasner is understood to be meeting Leeds-based property developer Norman Stubbs on Monday in the hope of securing a seven-figure investment to keep the administrators at bay.
If an agreement cannot be reached then Krasner, an insolvency practitioner by trade, may be left with no other alternative but to place the club in administration.
Blackwell, though, will deal with that as and when it happens as he said: "The chairman is a lot better advised on the finances of this football club and if that is what he says, then whatever will be, will be.
"How do we deal with that? We deal with the football, and that's all I will do until it happens.
"Until we face the realities of it, if and when it happens, then we will get on with life and move on, and that's exactly what I will do.
"But I don't know what is going to happen. I really can't say what is in the future, and I can't dwell on it.
"At this stage it's speculation, and you can't live your life based on that. I know because I have experienced that this week from a certain person.
"He speculated how he was going to change the football club, and then the following day he found he had not got five pound in his pocket."
Blackwell was referring to Sainsbury's comment that he wanted Crystal Palace boss Iain Dowie to become manager should his takeover succeed.
"That upset me to a degree," revealed Blackwell.
"But you treat anything like that lightly. He wasn't the owner of this football club.
"It's like me saying I've got £30million and I'm going to bring a manager in and do this and do that. You take it with a pinch of salt and get on with the football.
"But I can't worry about what's happening off the pitch because I've enough to worry me on it."
With typical Blackwell humour, he added: "I've since swapped from Sainsbury's to Tesco!
"I shall continue shopping at Tesco's for the foreseeable future, even though it is costing me a few extra pounds with the extra mileage to get there."
Leeds chairman Gerald Krasner is refusing to give up the fight despite admitting "administration will happen" after Sebastien Sainsbury's proposed takeover finally collapsed.
With the £25million buy-out in tatters Leeds stand on the brink of administration, potentially within the next three months.
However, Krasner is determined to hold things together.
When asked whether Sainsbury's decision meant administration was now around the corner for Leeds, Krasner, said: "Eventually it will happen.
"It is not going to happen today or tomorrow but unless something positive happens [with another investor], it will happen."
He told The Independent's online edition: "The financial situation has not been good since day one.
"But having reduced the debts from £104million to less than £25million, we are not going to give up."
The reason for the failure of Sainsbury's bid is the reason the Elland Road club are in such dire straits - the high level of debt.
Although losses have been slashed from £104million to £25million in 10 months, the club is expected to lose £10million between now and the end of the season.
Anyone staging a takeover bid - and Leeds-based property developer Norman Stubbs is the only interested party left - would have to find £40million.
There is not that sort of money washing around for Championship clubs but despite those developments, Sainsbury has still not given up hope of coming to Leeds' rescue.
"We never had all our eggs in one basket and we do have a possible contingency plan," he said.
"Over the next 24 hours we shall be considering our options, but I have developed a real affection for this football club and I still hope there is a way to save Leeds United.
"There is no way I want to see it go into administration, but should that happen I will not try to rescue it.
"I want to make it clear it has always been a case of Leeds or nothing for me. I will not be bidding for any other club."
The prospect remains, however, of Leeds falling into administration, or even facing a winding-up order, which would result in an automatic 10-point deduction by the Football League and with it a battle to avoid relegation from the Coca-Cola Championship.
Leeds will now be desperate to do a deal with either Chelsea or Liverpool for young goalkeeper Scott Carson.
The club have met representatives from both sides over the last 24 hours and although no deal has been finalised Leeds could push through a transfer as they are in need of the funds it would bring.
Leeds manager Kevin Blackwell is refusing to contemplate the threat of administration, which would throw the club's season into turmoil.
Krasner is understood to be meeting Leeds-based property developer Norman Stubbs on Monday in the hope of securing a seven-figure investment to keep the administrators at bay.
If an agreement cannot be reached then Krasner, an insolvency practitioner by trade, may be left with no other alternative but to place the club in administration.
Blackwell, though, will deal with that as and when it happens as he said: "The chairman is a lot better advised on the finances of this football club and if that is what he says, then whatever will be, will be.
"How do we deal with that? We deal with the football, and that's all I will do until it happens.
"Until we face the realities of it, if and when it happens, then we will get on with life and move on, and that's exactly what I will do.
"But I don't know what is going to happen. I really can't say what is in the future, and I can't dwell on it.
"At this stage it's speculation, and you can't live your life based on that. I know because I have experienced that this week from a certain person.
"He speculated how he was going to change the football club, and then the following day he found he had not got five pound in his pocket."
Blackwell was referring to Sainsbury's comment that he wanted Crystal Palace boss Iain Dowie to become manager should his takeover succeed.
"That upset me to a degree," revealed Blackwell.
"But you treat anything like that lightly. He wasn't the owner of this football club.
"It's like me saying I've got £30million and I'm going to bring a manager in and do this and do that. You take it with a pinch of salt and get on with the football.
"But I can't worry about what's happening off the pitch because I've enough to worry me on it."
With typical Blackwell humour, he added: "I've since swapped from Sainsbury's to Tesco!
"I shall continue shopping at Tesco's for the foreseeable future, even though it is costing me a few extra pounds with the extra mileage to get there."