Balram Chainrai has withdrawn his bid to buy back Portsmouth Football Club.

Chainrai, who has already owned the financially stricken club twice before as a 'reluctant' owner, pulled out of his offer early this morning after a number of former players and staff put in high payment demands.

These include ex-Fratton favourites Richard Hughes, who is due to return to Fratton Park with AFC Bournemouth on Saturday, as well as Michael Brown – the pair leaving Pompey over a contract dispute.

It is also believed that Nigerian striker Kanu, who scored the club's winning goal in the 2008 FA Cup final, has also put in a claim – however this looks to be the £3million set to go before a tribunal, which the club are confident on winning.

The Hong Kong-based businessman added his frustrations on not being able to do a deal with the administrator, stating: “Unfortunately, our efforts to save the club once more from extinction have hit a wall of rejection and lacking co-operation from the administrator and other interested parties.

"We are not the ones who have caused the club to collapse and we are not the ones to choose PKF as administrators.

"As history has recorded, we sold the club over a year ago after saving it from liquidation and unfortunately found ourselves again fighting to save the club from another liquidation.

"Through this administration process over the last six months we have always had the club's best interest in mind - unlike many parties who were involved in the process.

"We repeatedly encouraged the administrator to find a new, willing and able buyer to take over the club - unfortunately he was unsucessful in this job and couldn't find a buyer despite his promises.

"Later he approached us to be his safety net to save the club as he couldn't find a buyer. We agreed in the effort to avoid liquidation of the club."

This revelation paves the way for fan-run Pompey Supporters' Trust to take over the club – the favoured option for the majority of the club's die-hard Blue Army.

Chainrai must, however, accept the PST's offer of £2.7million for his charge on the club, before any takeover can be approved by administrator Trevor Birch.

The Trust has raised £3million through fan pledges, as well as attracting a number of high net worth individuals willing to put six-figure sums into the South Coast club.

The supporters' association had to wait to be the only 'credible bid' on the table before they could put in a formal offer for the club; which would also satisfy Portsmouth City Council's criteria for issuing the £1.45million loan to buy back Fratton Park from Chainrai's company, Portpin.

This loan will be repaid within one year from the Premier League parachute payments, with interest on top to put extra money back into the city – agreed unanimously by councillors, believing the club was “the glue that held the Portsmouth together”.

Fans' will no doubt be jubilant at this morning's revelations, with many taking to Home Park last night to air their frustrations against Chainrai during the side's 3-0 defeat by Plymouth Argyle in the first round of the Capital One cup.

This news will also come welcome to Pompey boss Michael Appleton, who has yet been unable to make any signings within this transfer window, except goalkeeper Simon Eastwood on non-contract terms.

Appleton, who joined the club nine months ago after the departure of Steve Cotterill, has had little profit for his commitment, after a number of punishments from the Football League saw the club relegated from the Championship.

And now, before a ball has been kicked in the season which starts on Saturday, the club have been dealt another ten point deduction – effectively ending the club's chances of promotion back into English football's second tier.

However, once the PST bid is accepted by administrator Trevor Birch, the club will exit administration and the club will be able to sign players to aid the club's rebirth.

Trialists Mustapha Dumbuya, Kieron Djilali, Josh Thompson and Jack Compton are all waiting in the wings to join Pompey – with Compton himself set to rejoin the club which he learnt his trade, before moves to West Brom and Falkirk.

Former chief executive and ex-FA head of integrity David Lampitt is also reported to have put in a claim against the club – himself being culpable for Pompey's demise over the past two seasons.

Lampitt was installed as the club's CEO as former owners Convers Sports Initiatives took charge of the club, only for owner Vladimir Antonov to have his assets frozen after an investigation into his personal wealth back in Lithuania.

Chainrai added in his statement that he would happily assist any other party in their purchase of the club, including the Pompey Supporters' Trust.

"This is the moment we have been waiting for,' said Trust spokesperson Colin Farmery.

"Fans need to be ready to come up with the money they have pledged. It is a pivotal moment in the club's history.

"We welcome the fact Portpin have stated they want to help save the club. It is in no one's interests that Pompey are liquidated."

"I am certain Pompey fans, the city of Portsmouth and the wider football family will be able to do what is needed to make Pompey the biggest community club of its type in the UK."

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