The Blue Knights have withdrawn their bid to take control of Rangers after their latest attempt to buy the club was unsuccessful.
The club's administrators Duff and Phelps say talks with another party are at an "advanced stage" as they prepare to name a new prefered bidder.
The new consortium is believed to be fronted by former Sheffield United chief executive Charles Green.
Duff and Phelps added that Owner Craig Whyte has agreed to transfer his 85% majority shares to any biding party.
"The administrators better have somebody good, some good credible consortium who is fully funded, said Blue Knight's Brian Kennedy.
"This is not about us owning Rangers Football Club. It's about Rangers Football Club surviving.
Kennedy's partner Paul Murray added "We really hope this time they have got it right because if they haven't the future is pretty bleak."
Sale Sharks owner Kennedy later valued their final bid at £11million and revealed they had hoped to start again from a position of no debt, with former Rangers managers Walter Smith and Graeme Souness on the board.
On Thursday night, Kennedy issued a noon ultimatum to the administrators but the race to assume control appears to have been won by Green's consortium, who have experience of running football clubs in England.
Duff and Phelps hope to complete the sale of the club by Sunday.