Leeds United's board is considering the sale of Elland Road, something it considers potentially preferable to a proposed £25 million takeover bid from the London businessman Sebastian Sainsbury.

Seven months after a group of local businessmen headed by Gerald Krasner took over the former Premiership club to alleviate the £100 million debt, Leeds are still burdened by liabilities of more than £30 million.

With the Thorp Arch training ground sold for a reported £4.2 million and leased back to the club, Leeds sources indicate the club were preparing to cash in and lease back the stadium - their last saleable asset - as an alternative to Sainsbury's bid.

"Mr Sainsbury has been involved for at least a week," said a source. "There is a strategy if we do not do a deal with them and one part of that strategy is selling the ground."

The board last night stalled on the Sainsbury offer, ostensibly to await proof of funding. "A number of discussions are continuing with various parties, and at this stage no agreement has been signed," said Krasner.

"We have always insisted that any interested party must be able to confirm that the necessary funds are available."

There was fresh mortgage activity at the stadium-holding company Elland Road Ltd, filed with Companies House on Saturday, though it is not yet clear what was its exact nature.

Krasner, who used a loan of £15 million from property developer Jack Petchey's firm Trefick to facilitate the March takeover, downplayed the new declarations, saying: "Maybe it is a remortgage from the same people; no new mortgages have been granted to my knowledge."

The impasse came as a shock to Sainsbury, who heads an Anglo-American consortium also involving the Tampa-based former telecom executive Burl Sheppard. "On Tuesday morning at 9.30am we made a submission that was agreed in front of counsel with Melvin Levi [ a Leeds director] and Gerald Krasner," said Sainsbury.

"[ The deal indicated] that they would sign a letter of intent to sell on Wednesday [ two days ago] at which point they would receive £500,000 non-refundable deposit and £2 million on Friday morning with the balance of pounds £22.5 million next Friday.

"I said to Krasner that if the money wasn't by the time specified they can tear up their letter of intent. Where was the risk for them?"

Preston have agreed to sell Northern Ireland international David Healy to Leeds.