Wasps will be relegated from the Premiership to the second-tier Championship, England's Rugby Football Union (RFU) confirmed on Friday with the club suspended from the top-flight and Premiership Rugby Cup for the rest of the 2022-23 season.
After the club went into administration earlier this month, the RFU said it was working with Wasps, the club's administrators and the Premiership to look into the possibility of a buyer taking over the Coventry-based side.
A week after former Premiership and European champions Wasps were suspended by the RFU, the club made 167 players and staff redundant.
"Following a meeting of the RFU's Club Financial Viability Group today, the RFU can confirm the suspension of Wasps from Gallagher Premiership Rugby and Premiership Rugby Cup for the remainder of the 2022/23 season," the RFU said in a statement.
"The RFU's Club Financial Viability Group ... has taken the decision to suspend the team in order to support the prospect of securing a deal with the right investor and giving the club the best chance for a long term sustainable future."
The statement added that any potential investors and management would require due diligence and approvals from the RFU and Premiership Rugby Limited.
"A condition of any potential deal will include a requirement for the payment of all rugby creditors," it said.
"Under RFU Regulations, Wasps will be relegated from Gallagher Premiership Rugby, and therefore if investors can be secured, the club will restart in the Championship in season 2023/24.
"The club is able to appeal this decision if it can show there was no fault insolvency."