Steve Parkin's proposed takeover of Leeds has collapsed - paving the way for the club to finally appoint Kevin Blackwell as manager on Wednesday.

Parkin has spent the last few weeks negotiating with the current United board in the hope of securing a £25million buy-out of the financially-troubled Elland Road club.

But despite Parkin's accountants and advisors spending the past 11 days going through the club's financial records, he has now been forced to pull out of any deal.

There is the suggestion Parkin, chief executive of the Brighouse-based Clipper Group of companies involved in haulage, warehousing and security, has been unable to raise the cash.

It is believed one of Parkin's major financiers has withdrawn his backing due to the fact that after recently going through the process of due diligence, it was felt unwise to progress with any investment.

Due to Parkin's long-standing interest, and the possibility he was closing in on a deal, it led to the Leeds board postponing the appointment of Blackwell on Monday in almost farcical circumstances.

Parkin was known to be interested in Crystal Palace manager Iain Dowie taking over the troubled United helm, forcing chairman Gerald Krasner to backtrack.

Blackwell was called into a meeting on Monday with director Simon Morris and informed he would have to wait a few days until the situation was resolved.

The 45-year-old, who spent last season working as head coach under former bosses Peter Reid and Eddie Gray, angrily returned to his family home to contemplate his future.

However, with Parkin now out of the picture, managing director David Richmond has on Tuesday afternoon met with Blackwell to formally offer him the position of manager.

Blackwell, though, is firmly within his rights to deliver a dramatic snub to the Whites after the way he has been treated, and in particular as he is known to have attracted the interest of both Southampton and Blackburn.

But it is likely Blackwell will now accept the two-year deal that was originally on the table, with his appointment to be confirmed in a statement on Wednesday.

His first task, though, will be to oversee the departure of star striker Alan Smith to Manchester United for £7million, with the Old Trafford club to confirm that deal in their own statement to the Stock Exchange on Wednesday morning.

The Leeds board now face a tense few weeks as they look to sell off a number of their other assets in a bid to reduce a wage bill unsustainable for the Barclaycard Premiership, never mind the Coca-Cola League where the club will be plying their trade next season.

The likes of Mark Viduka, Danny Mills, Dominic Matteo and potentially James Milner are all to be sold as Leeds look to raise much-needed cash.

Payments are due on the £15million loan the board took out with Aston Villa shareholder Jack Petchey to secure their £22million takeover in mid-March, with the first on June 1, an interest-only sum of £1.7million.

But Leeds and Blackwell will still be left with players such as Nick Barmby, currently on £35,000 per week, which means the former England international is unlikely to be sold on as any buying club would refuse to match such a staggering salary.

Unless further investment is secured from another source, and there are rumours a second group have been watching the Parkin situation unfold in recent weeks, then the threat of administration could again become a possibility.

There is the belief, though, the club will survive what could be a turbulent summer and they will duly take their place in the Football League, with Blackwell at the managerial helm.