Leeds Utd is facing a cash crisis

The Daily Mirror had reported that the investor, Sheikh Abdulrahman Bin Mubarak al Khalifa, was planning a �35m rescue package.

But Leeds said that while it was in talks with potential investors, a takeover was not on the cards.

It added the Sheikh had not shown evidence he had the funds in place.

"The company has not received any satisfactory evidence from Sheikh al Khalifa that funds exist to fulfil any proposal currently under discussion between him and the company," Leeds said in a statement.

Search for cash

The club also confirmed that it was in negotiations with creditors to extend a 19 January deadline for coming up with alterative funding arrangements.

BBC Radio Five Live had reported that the deadline could be put back until the end of the month to see if the club could raise cash through player sales.

If the club does not come up with a viable financing arrangement, it is widely expected to become the first club in England's elite Premier League to go into administration.

Leeds United shares jumped more than 40% to 4.5p in early trade, but then fell back slightly to close at 4.25p.

Leeds built up huge debts under former chairman Peter Ridsdale, who borrowed heavily in an effort to turn the club into a giant of European football.

The club reached a semi-final of the Champions League competition, but the debt quickly returned to haunt it.