Tim Sherwood has pulled out of talks with QPR over the manager's job.
The London Evening Standard says Sherwood failed to receive the assurances over the club's future that he has sought.
The former Tottenham manager wanted details of the club's plans if they were relegated.
The club could face a transfer embargo if they do not pay a fine that could be as much as £54m.
There is also the problem that at least eight of the squad the new QPR manager inherits would be out of contact in the summer with a further four loanees due to return to their parent clubs.