Sheikh Jassim bin Hamad Al Thani will reportedly refuse to match the current valuation of Manchester United set by the Glazer family and is prepared to walk away from a deal.
Sheikh Jassim's offer for the 20-time English champions is believed to be around £4.5bn, which is £1.5bn short of the asking price set by the current owners of the club.
According to Sky Sports News, the Qataris will not overpay for the Red Devils, and a deal is seen as unlikely unless the Glazers are prepared to negotiate.
Sheikh Jassim has made it clear that he is prepared to clear Man United's debts, which are believed to be around £1bn, if he completes a takeover.
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"The bid plans to return the club to its former glories both on and off the pitch, and – above all – will seek to place the fans at the heart of Manchester United Football Club once more," read the statement from Sheikh Jassim's consortium when the offer was confirmed.
"The bid will be completely debt free via Sheikh Jassim's Nine Two Foundation, which will look to invest in the football teams, the training centre, the stadium and wider infrastructure, the fan experience and the communities the Club supports.
"The vision of the bid is for Manchester United Football Club to be renowned for footballing excellence, and regarded as the greatest football club in the world. More details of the bid will be released, when appropriate, if and when the bid process develops."
British billionaire Jim Ratcliffe has also made an offer, believed to be around £4.5bn, but a recent report claimed that the proposed takeover would not include him clearing the debts.
Any sale of the club is allegedly unlikely to be completed before May at the earliest, but the proposed new owner would want to have plans in place for the summer transfer window.
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Both Sheikh Jassim and Ratcliffe have allegedly made it through to the second round of the process, with the two parties preparing to meet with Raine Group, who are overseeing the potential takeover.
Co-owners Avram Glazer and Joel Glazer are also both believed to be prepared to walk away from a potential deal unless their valuation is met, creating a difficult situation when it comes to the negotiations.
Man United have made progress this season under the management of Erik ten Hag, lifting their first silverware in six years at the end of last month by beating Newcastle United in the EFL Cup final.
The 20-time English champions are also chasing success in the Europa League and FA Cup, while they are in a strong position to finish in the top four in this season's Premier League table, currently sitting third, seven points ahead of fifth-placed Liverpool.
