Morgan is said to have run out of patience after several months of negotiations. The talks broke down amid allegations from Morgan's camp that Liverpool were trying to find investors with the clout to gazump him.
"Steve has finally lost patience with the Liverpool board using his offer as a stopgap while they scour the world looking for a better one," said Vincent Fairclough, Morgan's lawyer. "He is no longer prepared to be used as a stalking horse. He has tried his best throughout the year to invest in the club because he wants to see them go forward. He just hopes for the sake of the fans and the shareholders that the directors urgently secure a deal and get on with it, as it is clear the club badly needs investment."
'Despite the Liverpool chairman David Moores indicating at the club's AGM this month that it was "maybe time" to accept the proposals, it transpired that there had been no formal contact since Morgan set a deadline for the end of last week. "Steve has had enough of the indecision," said Fairclough. "He has other things to do with his life."
Coming on the back of record £21.9m losses, and with the estimated costs of Liverpool's proposed new stadium in Stanley Park soaring to £115m, Morgan was supported at the AGM by the majority of the audience. His sympathisers believe Liverpool have only a slim chance of sustaining a challenge for top honours unless there is significant investment in the club. They also believe it would be critical in persuading Steven Gerrard to stay at Anfield. He has threatened to leave if he suspects that the club's ambitions do not match his own.'