National World, the owner of titles such as the Yorkshire Post and The Scotsman, has stepped up its interest in buying the Telegraph.
The London-listed regional newspaper group has declared itself as the “best qualified” potential owner of the group which also includes fellow publication, The Spectator.
National World first registered an interest in the Telegraph last year when it was put up sale by lenders seeking to recover debts from previous owners, the Barclay family.
Since then, RedBird IMI, an investment fund majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates (UAE) and owner of Manchester City Football Club, struck a deal to take control of the Telegraph Media Group.
However, the deal came under pressure after criticism from politicians and industry bosses.
Earlier this month, a Government minister said that foreign governments would be banned from owning UK newspapers and magazines, in a move likely to thwart the deal.
Earlier this week, the Culture Secretary Lucy Frazer also confirmed the deal will face an in-depth investigation over free speech concerns.
This has sparked fresh speculation that a new buyer will need to take control of the newspaper giant.
Other interested parties in the Telegraph include the owner of the Daily Mail, Rupert Murdock and GB News backer Sir Paul Marshall.
As part of its full-year results, which were released to the market on Thursday, National World said: “Our view remains that National World remains the best qualified among the various candidates for such a deal both in terms of industry qualification and also editorial independence, as well as the absence of any competition issues,.”
It came as the firm, which also runs the Express & Star in Wolverhampton and the Lancashire Post, revealed a jump in revenues for the past year, as it was boosted by acquisitions.
National World reported revenues of £88.4m for 2023, up from £84.1m a year earlier.
It said it gained over £10m over the year through seven acquisitions, which included the takeover of Express & Star owner Midland News Association and Insider Media.
The company also reported an adjusted operating profit of £9.1m for the year, down from £9.3m a year earlier.
Since the Telegraph takeover saga started, the Barclay family has offloaded delivery group Yodel and accepted outside investment into online retailer, Very.