Premiership Rugby chief executive Mark McCafferty has vowed to do all he can to help Wasps find new investors and stave off the growing threat of administration.
Wasps were close to completing a takeover deal last week but that arrangement has fallen through, leaving the club in a precarious financial position.
"It would be unhelpful to speculate about that (administration) at this point," McCafferty said. "We understand that London Wasps are doing everything they can to avoid this situation and are actively seeking investment as a matter of urgency."
It is understood Wasps have enough funding to see them through the next month, which would allow them to complete the Premiership season, but the club need urgent investment to remain in business beyond May.
Wasps have returned with their begging bowl to three parties who had previously expressed an interest in the club while issuing an appeal for potential new investors to step forward.
If no investment is forthcoming, Wasps would find themselves in administration and facing a potential points deduction.
McCafferty added: "It is well known that London Wasps were seeking new investment and despite moving to advanced stages of completing a sale the negotiations have stalled. London Wasps are looking for alternative approaches and we're doing everything we can to help."
Wasps have been looking for a new owner since last July, when Wycombe council withdraw its support for the construction of a new stadium. In February, Wasps said they were at "advanced stages of discussions" with four interested parties but, having identified a preferred bidder, talks have fallen through.
A club statement said: "The board is disappointed to confirm that negotiations, which had been leading towards an imminent takeover of the club, have stalled. The board, having taken independent advice, is able to confirm that London Wasps Holdings Limited remains nevertheless a going concern.
"However, the board acknowledges the urgency of the current situation surrounding the club. There are ongoing active discussions with other potential investors but the club is seeking, using all best endeavours, further expressions of interest."