Eriksson, whose coaching spells include England, Manchester City and Lazio, moved to Meadow Lane last year with the club's former owners aiming to take England's oldest Football League club back to the top level after years in the doldrums.
But the Swede told the BBC's Sportsweek programme on Sunday the project was on hold with new money still needed to fund the plan.
"The project is on hold at the moment unfortunately, because things went bad at Notts County," he said.
"But hopefully in just a couple of weeks it will take off again. That's our hope and what we are working very hard for. I still believe it is possible but what is needed is money.
"When I signed and other people signed we strongly believed that everything that was said was true and obviously it wasn't.
"Of course I feel let down, but you have to work and find other, real people."
Eriksson was also linked with coaching roles with both World Cup qualifiers North Korea and his native Sweden, but said on Sunday: "The challenge is still there to take a club from 19th place in League Two into the Premier League.
"It is one of the biggest things you can do in football. Of course I miss England, Lazio and football at that level, but life goes on."
