The Middle-Eastern investment firm, Gulf Finance House, has confirmed it has signed an exclusive agreement to lead a takeover of Leeds United.

The financial future of the club has been up in the air since the current owner, Ken Bates, revealed in June that he had granted exclusivity to a potential investor.

Details remained thin on the ground after that, other than for the club to confirm the exclusivity period had ended, before, on Saturday, Bates confirmed he was in talks with a group from the Middle East.

He entertained four businessmen in his box at the game against Nottingham Forest and, on Thursday morning, in a letter released to the Bahrain Stock Exchange, GFH confirmed that one of their subsidiary companies, GFH capital, were the group operating on behalf of the potential purchasers.

The letter read: "Further to the news published in the Gulf Daily News on the 25 and 26 Sep 2012, referring to the proposed acquisition of Leeds United Football Club (LUFC), GFH would like to confirm that GFH Capital Limited, a 100% subsidiary of Gulf Finance House, has signed an exclusive agreement to lead and arrange the acquisition of Leeds City Holdings, the parent company of LUFC.

"Due to a confidentially provision, no further details can be given about the commercial terms of the transaction."

Any takeover would end Bates' seven-year reign, which has been marked by supporter unrest. Protests have regularly been staged against the former Chelsea owner's approach to running the club.

David Haigh, a Leeds fan, who is the deputy chief executive officer and chief operating officer of GFH Capital, is thought to be leading the deal. He wrote on Twitter: "Good morning everyone. Thank you for all your messages of support. They are very important to us. £LUFC."

The Leeds United Supporters Trust welcomed the development.

"The trust has been calling for the potential buyer and the club to say something and this is what we've all been waiting to hear," said the trust's chairman, Gary Cooper.

"It's been a long, long summer for Leeds fans who have heard very little. We knew these talks were going on and with neither side willing to say anything it's been frustrating.

"So we're really pleased GFH have finally come out and said something. It appears now that this deal is close to being completed. We always understood that this was going to be a takeover and we all hope now that the new owners share our ambitions for the club.

"We're hoping for investment in the team and for Leeds United to be glorious again. These people are first and foremost businessmen, hopefully sharing our vision, but expecting a return on their investment and the Premier League offers vast riches if the club can get it right on and off the field."