Portsmouth have confirmed the club expect to go into administration tomorrow.
Manager Avram Grant had earlier said he had been "more or less" told the club would go down that route.
And a statement on the club's official website confirmed as much, with the nine-point deduction meaning almost certain relegation from the Barclays Premier League.
Pompey owner Balram Chainrai and his fellow investors had been in London continuing talks with representatives of four different groups interested in buying the club.
However, he has accepted that it is now unlikely a deal can be done before the club's winding-up hearing is due to be heard in the High Court on Monday.
Chainrai's spokesman Phil Hall told www.portsmouthfc.co.uk: "There is now only a short window of opportunity for buyers to come in with a credible offer. We have to be realistic and having the club wound up is not an option as far as we are concerned.
"They are the victims of circumstance, having injected funds in the form of a short-term loan to the Al Faraj Group, who subsequently invested the money in the club.
"The partners have put £17million of their own money into the club and have a responsibility to ensure Portsmouth Football Club survives.
"Administration would mean the club re-emerging as a healthy financial entity. The club would then become an attractive proposition for a potential buyer who could invest new funds in rebuilding the club's future.
"We would like to ask the fans, the staff and management of Portsmouth Football Club for their support and patience should this step be taken, as they believe it is the only route left open to them."
Hall added: "The serving of this notice means the winding-up order is automatically suspended. It means the club is safe, can fulfil its fixtures and as far as is possible it is business as usual.
"Mr Chainrai hopes the supporters will get fully behind the team as usual for their Premier League match at Burnley on Saturday and the following weekend's FA Cup quarter-final at home to Birmingham.
"He has agreed to continue funding the club going forward until its long-term future is decided. He will also pay for the administration process out of his own pocket."Reuse content