Wasps are set to enter into administration in the coming days with the club unable to find a solution to their financial woes and have been suspended from the Premiership.
The former Premiership and European champions had filed a notice in the High Court last month stating their intention to appoint an administrator to secure their future, putting them on the brink of relegation.
On Wednesday the Rugby Football Union (RFU) confirmed that Wasps had been suspended from English rugby's topflight. The club will have to apply for the suspension to be lifted if they can demonstrate the "means and commitment" to pay rugby creditors.
"We appreciate this is a very difficult time for Wasps players, staff and supporters who will be concerned at news that the club is likely to enter administration," the RFU said.
"The RFU will continue to work with the club, PRL and any potential administrator or future investors to find the best possible outcome for the club."
Earlier on Wednesday the club withdrew the men's team from Saturday's Premiership game against Exeter Chiefs as they were unable to meet their regulatory requirements without a deal in place.
"Negotiations to secure deals that will allow the men's and women's rugby teams, netball team and the arena and associated business to move forward are ongoing," the club said in a statement.
"However, it has become clear that there is likely to be insufficient time to find a solvent solution for the companies within the group, and it is therefore likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter.
"While the companies within the Group all represent strong and viable businesses, the reality is that they have insufficient cash at this time to continue to fund operations until these complex negotiations have concluded."
RFU regulations state that a club placed in administration during the season will be relegated for the following campaign. Wasps are 10th after four games in the 13-team Premiership.
They were due to repay £35 million in May from a bond scheme used to help finance their relocation from London to Coventry and purchase a lease on their stadium.
"We have... been asking potential funders and investors to provide bridging finance to provide enough time for a solvent solution to be found. Regrettably, this has not been possible to date," the club added.
Last month fellow Premiership side Worcester Warriors went into administration after being suspended from all competitions when they failed to meet a deadline to prove they could operate amid their financial difficulties.