According to the BBC, The Portsmouth Supporters' Trust are favourites to take control of the club after the Football League failed to agree on Balram Chainrai's bid. A League meeting on Thursday failed to decide whether Chanrai's Portpin would pass the 'owners and directors' test.
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Portpin were thought to have been administrator PKF's preferred bidder for the League One outfit.
Portsmouth have been in administration since February and are around £61m in debt.
One of the stipulations of the test is that an owner or director cannot have been involved with a club that has twice gone into administration.
Chainrai was in control of Pompey when they went into administration in 2010, and may have had some involvement as a shadow director when they were placed into administration for a second time in February 2012.
Portpin have always denied that this is the case.
The Hong Kong businessman is owed £17m by the club and holds Fratton Park as security.
The League have refused to publicly comment on Thursday's meeting but it is understood PKF will now resume talks with the PST to present their bid to the Football League.
Although this is good news for the Trust, there is still a long way to go before any deal is finalised.
The PST are led by local businessman Iain McInnes, and they have offered Chainrai £2.75m for Fratton Park.
It is understood PKF could also consider another bid, although this is unlikely.
UK investors Portco, led by Scottish businessman Harry Kerr, are also interested in buying the club.
They are also one of three parties interested in buying land around Fratton Park that is up for sale to the highest bidder after owners Miland Developments 2004 Ltd went into administration.
Portpin and the property developer working with the PST - Stuart Robinson - are thought to be the other two suitors for that land.
Administrators of Miland Developments David Reuben & Partners confirmed to BBC Sport an announcement on the sale of that land will be made next week.
If the PST did take control of the club they would try and force a court to release Chainrai's charge on Fratton Park and sell them the stadium at the 'market rate'.
Another possibility is that PKF could ask Portpin and the PST to reach an amicable solution for the sale of Fratton Park.