David Rae has rejected an offer from an English-based consortium to purchase his 30% shareholding in Queen of the South.
Media Pro Sports made their bid for the First Division club on Monday night, promising to invest a six-figure sum immediately if accepted.
The long-serving chairman decided to knock back the offer after giving it consideration overnight.
He told STV: "I've decided to reject the offer and keep my shareholding in the club. I've withdrawn my interest in selling my shares.
"I've a strong emotional attachment to the club and after Saturday's game I got many compliments of what I've done for the club."
Rae said he doubted whether the consortium would make any further bid, before adding that he wanted his shares to pass to members of his family in the future.
"I was really touched by the kind words I received on Saturday," he said. "Having thought about the consortium's offer, I decided the club should remain in the hands of the people of Dumfriesshire.
"I'm 74 now and I've supported Queen of the South since I was 11. I'd like to leave my shareholding to my family.
"It wouldn't move me if they [the consortium] were to come back in."
Jonathan Hope, the agent representing the consortium in the deal, said the group respected the decision made and outlined brief plans for what had been planned for the club.
“Media Pro Sports would like to thank all involved in their plans to takeover David Rae's shareholdings at Queen of the South,” he said.
“Their cash injection was an extremely fair proposal and we now know through Bob Smith, who is representing Mr Rae, that it has been rejected on emotional grounds.
“Plans included setting up a full youth academy funded by ourselves and not the club. This would have been great for the local community to get closer to the club at no expense to the club.
“It was also planned to increase the wage budget dramatically to attract quality players, and reward current players with better deals, to ensure the team were challenging for honours next season and the seasons to come.
“Our offer was a First Division offer and we were prepared to take the gamble on the team staying up in the second tier.
“The regular six figure sums the consortium planned to inject would have seen the club in a very healthy position and even if the club went down, we were still prepared to inject the agreed funds. In our opinion, this was the best thing for the club.
“We wish all the players and management team all the very best in their fight to stay in the First Division. We will move on with no further comment on this matter as we respect the emotional decision Mr Rae has made.”