A consortium led by US firm Redbird Capital was set to take control of Telegraph Media Group (TMG), with state-backed Abu Dhabi investment vehicle IMI among the investors.
The pair’s original joint venture, known as RedBird IMI, had originally agreed to buy the Telegraph titles in 2023.
But prospects for a deal were held up by the previous Conservative government’s subsequent ban on foreign state ownership of UK newspapers.
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The row centred on the involvement of IMI’s owner Sheikh Mansour bin Zayed Al Nahyan, who is the owner of Manchester City FC but also the vice president of the United Arab Emirates.
The ban was based on fears around editorial independence.
However, the rules were relaxed earlier this month by the current government, which said a foreign state-controlled holding of up to 15% was acceptable.
It is understood that UK-based media investors are among the proposed owners within the consortium.
Sky News reported on Monday that the Daily Mail’s owner had been in talks over involvement.
The Telegraph newspaper itself reported that regulatory hurdles remained – a factor that could yet scupper completion of the deal.
Anna Jones, TMG chief executive, said: “Telegraph Media Group is an award-winning news media organisation, with exceptional journalism at its heart, supported by leading commercial expertise, a commitment to innovation and a laser focus on data to drive strategy.
“RedBird Capital Partners have exciting growth plans that build on our success – and will unlock our full potential across the breadth of our business.”
RedBird, whose other UK interests include a 10% stake in the US group behind Liverpool FC, said its growth strategy would include “capital investment in digital operations, subscriptions and journalism”.
Its statement continued: “RedBird will build on the strong financial foundations established by the current management team and will work with them to grow the brand internationally, with a focus on the United States where RedBird has a strong strategic presence across news, media and sports.
“Together, RedBird and TMG senior leadership will work to develop new content verticals in areas such as travel and events to maximise the commercial opportunities from a growing international and mass affluent subscriber base.”
Redbird founder Gerry Cardinale added: “This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base.
“We believe that the UK is a great place to invest, and this acquisition is an important part of RedBird’s growing portfolio of media and entertainment companies in the UK.”
