The Alliance of American Football suspended its operations on Tuesday, according to NFL Network's Aditi Kinkhabwala.

The league isn't folding yet, but it's "moving in that direction," sources told ProFootballTalk's Mike Florio.

Majority owner Tom Dundon said last week the AAF could only continue with the cooperation of the NFL and its players' association.

"If the players union is not going to give us young players, we can't be a development league," Dundon said. "We are looking at our options, one of which is discontinuing the league."

Dundon invested $250 million into the league last month and was given the option to pull the funding as he wished. He will lose approximately $70 million of his investment, and his desire to fold the league opposes the wishes of co-founders Charlie Ebersol and Bill Polian, sources told Action Network's Darren Rovell.

League officials were surprised by the decision and are still hoping that outside funding could save the AAF, sources told Sports Illustrated's Conor Orr.

Perception inside the AAF is that Dundon made his initial investment in order to acquire the technology and IP rights of a gambling app the league is developing, a source told SI's Albert Breer.

The AAF just completed Week 8 of its 10-week season. The championship game was scheduled to take place in April at one of the Dallas Cowboys' facilities.