His lawyer, Vincent Fairclough, was quoted as saying in the Liverpool Echo newspaper on Tuesday that Morgan was no longer prepared to be used “as a stalking horse”, claiming the board were looking on his offer as a stop gap while scouting around for a better one.
Liverpool say they are currently considering several offers to pump money into the club but chairman David Moores had hinted he might be ready to accept Morgan's bid at the club's annual general meeting on December 2.
The club plans to move away from Anfield to a new 60,000-capacity stadium at an estimated cost of £115million.
