1860 Munich, now playing in the second division, said its plan submitted to the German Football League (DFL) and which would have brought in a group of investors to bail the club out, was not approved by the DFL.
"We were informed in writing yesterday by the DFL that the contractual set-up of our model partly does not meet the guidelines of the league," the club said on its website.
It added that any investment by the new backers, led by Nicolai Schwarzer, would be "put on ice".
The investors were unveiled only days ago as the club's saviours together with new director of sports Miroslav Stevic, a former 1860 player.
"Up to now there is no refusal for the announced investors to come in," the DFL said in a statement. "The DFL considers the need for a discussion with 1860 (in the coming days)."
1860 Munich were once the city's biggest club, winning the Bundesliga in 1966, three years before their local rivals Bayern Munich won the title and began to dominate German soccer.
The Lions, as they are known, also played in the 1965 European Cup Winners' Cup final, losing to West Ham United.
