Saudi Media Group has not made a shortlist of consortiums aiming to buy Chelsea.
Fronted by Chelsea fan Mohamed Al Khereiji, it was one of six groups who said it had lodged a bid to buy the Premier League club last week.
Sources close to the SMG bid said its desire to do due diligence on the club and Chelsea's eagerness for a quick sale counted against it.
SMG offered more than £2bn, plus over £200m for immediate working capital.
It was informed it had not made the next stage on Thursday.
Some of the other bids have already done due diligence based on their previous interest in buying the club.