Dorset businessman Eddie Mitchell, the owner of non-league Dorchester Town, is stepping back from the chase to take over League One strugglers Bournemouth.
The Cherries are desperately seeking new investment
He contacted the club's administrators through his lawyers, but was told other negotiations were already "advanced".
The Poole-based property developer told BBC Radio Solent: "We were ready to go and talk to the club, but were told that it may be a pointless exercise."
Current Cherries chairman Jeff Mostyn is leading a rival consortium bid.
Mitchell added: "The administrators told us that things were already far advanced with someone else. For the benefit of the club, it's not worth us going in and interrupting negotiations.
"We expressed our interest though, and if the current negotiations don't go forward, then we'd like to think they'll come back to us. At this moment though, our plans are on the back burner."
Mitchell is a friend of fellow Sandbanks resident and former Bournemouth manager Harry Redknapp, now in charge at Premier League side Portsmouth.
Last week, Redknapp declared that he would also get involved if necessary, to prevent the Cherries going out of business.
Bournemouth have been in administration since early February, at which point they incurred a 10-point deduction under Football League rules.