An investment group including former AC Milan and Brazil forward Alexandre Pato have withdrawn from talks to take over Colchester United.
Pato attended last month's game against Fleetwood Town as a guest of chairman-owner Robbie Cowling.
However, in a joint statement both parties said: "Aspire Media Group has decided not to proceed with the proposed acquisition of Colchester United Football Club by Sports Alpha Capital (SAC), the investment consortium managed by Joao Xavier and including Alexandre Pato. Accordingly, discussions have concluded.
"SAC will continue to explore future opportunities within English football while maintaining a lasting respect and affection for Colchester United and its supporters.
"Colchester United remains focused on the remainder of the season and its ongoing ambitions for progress and success."
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Cowling put the club up for sale last year but a deal with the the US-based Lightwell Sports Group fell through in June.
The sale process was reopened three months later with Cowley saying he would take whatever time was needed to "find the right long-term steward" for the club
"I think I could grow it incrementally but fans aren't interested in that. All they're worried about is how it does in the league and whether it wins. The analogy I use is I understand fans, they want a moon shot, and all I feel able to provide myself is a slightly longer ladder every year," he told BBC Essex in December.
"Hopefully, I'm going to be able to go out there and find somebody that perhaps can provide that rocket."
The involvement of Pato, who won 27 caps for Brazil and was in their squad for the London 2012 Olympics, had excited the interest of U's fans.
It is not known whether there are other investment groups still in the running.
The takeover is being overseen by American consultant Mitchell B Reiss on behalf of the club.
Colchester are 12th in League Two ahead of Saturday's away game against Barrow.