The hospital which became the first in the country to be run by a private company may be managed by another Midlands NHS Trust.
The hospital is seeking a mutually agreeable end to the franchise
The board of Good Hope Hospital, in Sutton Coldfield, has approached the Heart of England Trust asking it to provide management support.
Good Hope was franchised two years ago after it dropped from a three-star rating to no stars.
The hospital currently has a one-star rating and large debts.
The Heart of England NHS Foundation Trust has three-stars.
Good Hope signed up with private firm Tribal Secta in a £1.3m deal.
Its chief executive, Anne Heast, has announced she is leaving to take up a new job.
In a statement, Good Hope chairman Graham Comfort said: "We have decided the opportunity provided by Heart of England's offer is the best way forward and Tribal Secta fully accepts our decision.
"As a result we will be seeking the mutually agreeable early termination of our franchise partnership with Tribal Secta," he said.
The hospital will remain an independent trust.