Beitar's owner Moshe Hogeg told Reuters that Sheikh Hamad Bin Khalifa Al Nahyan is looking to buy a stake in the top-tier Israeli football team known for its racist and Islamophobic fans.
Hogeg received a non-binding letter of intent from Al Nahyan to buy a roughly 50 percent stake in the club, he said.
Reuters was unable to reach Al Nahyan for comment.
The deal was announced on August 13, with a group of Israeli officials landing in Abu Dhabi two weeks later to discuss cooperation in a variety of fields.
The most vocal supporters of Beitar Jerusalem are members of the violent far-right La Familia group, well known for their opposition to integrating Arabs into the club.
Beitar's current owner Hogeg, who acquired the club in 2018, told the BBC last year he aims to turn this around. But the club's infamous reputation persists.
Three years earlier, fans of the Israeli team burned the Qur'an and insulted the Prophet Muhammad after a match with the Israeli Arab team Bnei Sakhnin ended in a goalless draw, according to the news site.
When the club signed two Muslim players from Chechnya in 2013, the move angered some fans, forcing the team to hire bodyguards to protect them.
The New ArabComments