Prospective Leeds United owner Massimo Cellino is in talks with rival consortium Together Leeds.
Cellino is still waiting to hear whether his appeal against the Football League's decision to block his takeover has been successful.
The club is currently losing more than £1m a month and players agreed to defer part of their wages last week.
Mike Farnan, of Together Leeds, confirmed the two parties were in talks.
"Our team felt the two of us together could become quite a powerful tool," he told BBC Sport chief sports correspondent Dan Roan.
"It makes sense. Whatever happens this club cannot be allowed to go into administration."
Farnan said talks had "become more aggressive in the last 48 hours" and added his group wanted to help and guide Cellino.
"We would be a tremendous support to him because he's charged in a little bit and made some decisions that haven't gone down too well," said Farnan.
"The club cannot be allowed to go into administration because the implications are massive."
The Together Leeds group tried take over the Championship club before owners GFH agreed a deal with Italian businessman Cellino in February.
The group includes former Leeds director Adam Pearson, Welcome to Yorkshire chief executive Gary Verity and Red Strike marketing executive Frank Devoy.
Cellino's takeover was blocked by the League last month after he was found guilty of not paying import duty on a yacht in Italy.
Farnan, previously a director at Manchester United International, believes Leeds has the potential to compete with the biggest in the country.
"From an international point of view, this club can do very well," he said.
"Leeds is a global brand in the same mould as Liverpool and Manchester United. That's something that needs to be rekindled."
Champions League semi-finalists in 2001, Leeds were relegated from the Premier League in 2004.
Under manager Brian McDermott, they have lost six of their last seven matches and are 15th in the Championship table.