Bauer, the German media group, is leading the race to buy Emap's consumer magazines and radio divisions.

Sources said that Bauer's bid for the two arms could be worth more than £1.1 billion.

The company, whose UK titles include Take a Break, that's life! and Bella, is understood to have entered the process at the eleventh hour, pushing out favourites Hearst and Global Radio.

Bauer is understood to now be in a period of exclusivity to buy the divisions. If it decides to proceed, a deal could be announced as early as tomorrow.

Times Online has learnt that Duncan Edwards, the head of Hearst-owned Natmags, sent an e-mail to employees, stating: "I can't tell you a lot about this speculation, but I can confirm that we are no longer involved.”

Sources close to the situation said that Hearst was not willing to increase its offer.

Mr Edwards wrote: “I will send out a fuller newsletter during next week, by which time I expect the outcome of the Emap sale will be in the public domain.

“We shouldn't see this as too much of a disappointment as there will always be other opportunities in the future and we can guarantee that we will look at them all.”

Emap's consumer magazine division, widely thought of as the most challenging part of the business to sell, could have received higher than expected bids. The division is valued in the region of £700 million.

Interest in the consumer magazines arm also came from the private equity groups Quadrangle and Providence, although Providence did not make a final round bid.

Bauer today for the first time confirmed interest in Emap's consumer magazines and radio businesses.

"We are generally interested," said a spokesman in Germany.

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