Newcastle owner Mike Ashley has been locked in talks with Amanda Staveley over the sale of the club for months.
The Toon chief admitted he wanted the deal tied up before the New Year but negotiations over the value of the club have proven a sticking point.
Express Sport understands Staveley has tabled an offer in excess of £300million this week.
However, it seems the bid has not been enough to tempt Ashley into parting ways with the north-east club and the deal is said to be off.
Talks between the two parties have reportedly completely broken down and there is not expected to be any sale to Staveley & PCP Capital Partners.
The news will come as a severe blow to manager Rafa Benitez who has already been starved of funds in the January transfer market due to the uncertainty surrounding the club’s future.
It now seems highly unlikely the former Liverpool boss will be afforded the cash he needs to strengthen his squad and he admitted last week he is in the dark over new signings.
“The last time we [Ashley and Benitez] talked we talked about different players and trying to move forward,” he said.
“I talk to Lee Charnley every day but I have no idea [on budget] but we’re still working.
“We won’t sell unless we can replace with better players and in January you need a lot of money to convince players to come here.
“We’re not planning to sell anyone who we consider can make a difference to the team. We have had some people asking but nothing serious and no offers on any of our players.”
Newcastle fans were also dismayed by the news and hit back at Ashley on Twitter for failing to reach an agreement to sell the club.
“Will somebody please tell me what Newcastle fans have done to deserve this?” one supporter wrote.
“52,000 every week, loyal to the end but this man is single handedly destroying a great club and the fans who support it.”
“Looks like the circus is hanging around a wee bit longer,” another fan added.
“Feel for the fans but an absolute shambles of a football club that crumbles by the week.”
A third supporter wrote: “Jesus sell it already Mike! Think of the fans. Wait a minute it seems he never does.