Southampton are in talks with former Bordeaux owner Joseph DaGrosa over a £200million takeover of the club.
Sportsmail understands that the American has entered into a period of exclusive negotiations with Southampton owner Gao Jisheng, who put the club up for sale earlier this year due to the increasing difficulty of taking money out of China.
DaGrosa spoke to Newcastle owner Mike Ashley about a takeover last year after his private equity company General American Capital Partners (GACP) sold their stake in Ligue 1 Bordeaux, but the talks did not lead to a formal offer.
It remains unclear whether his interest in buying Southampton will be successful, because the proposal is dependent on significant borrowing and the club are already servicing considerable debt, having taken out a £70m loan from MSD Capital earlier this summer.
Gao paid £210m for an 80 per cent stake in Southampton three years ago, but despite protecting the majority of his investment by keeping them in the Premier League throughout that period, he is eager to sell.
The club's valuation has been hit by the coronavirus pandemic which, along with Gao's liquidity issues, led to them taking out a larger-than-usual bridging loan with MSD to ensure they could meet their financial obligations at the start of the season.
DaGrosa is convinced that Southampton and several other clubs are undervalued due to the market overcorrecting amid the pandemic, a theory that GACP also apply to players.
If the takeover is successful, Southampton would see an influx of new signings.
DaGrosa believes that there are bargains to be had because few clubs are recruiting due to concerns over falling income in the absence of gate receipts.
Southampton suffered another setback this summer when a dispute with shirt sponsors LD Sports, a Chinese entertainment and marketing company, led them to cancel the contract.
The club are taking legal action against LD Sports, who have been replaced by another sponsor, betting company Sportsbet.io.
Southampton declined to comment.
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that would be a interesting takeover