Leeds have just issued a statement which revealed Sainsbury has withdrawn his interest.
The club said: "Leeds United's board can confirm that at 4.15pm today Sebastien Sainsbury's lawyers have informed Leeds United's lawyers that they will no longer be bidding to take over the club.
"Negotiations with other interested parties are ongoing. Further information will be supplied if and when discussions come to a conclusion."
Sainsbury has failed with two previous attempts to take over the club. Local property developer Norman Stubbs is thought to be the only remaining party continuing talks with the Leeds board.