"Wasps is likely to go into administration within days," the club said in a statement.
The club has filed notice to get insolvency experts in to help with their debts of tens of millions of pounds.
The club's holding company said they had been working "tirelessly" to secure the club's future.
The statement said that they believed it was the right course of action.
"We are aware that this will not only impact on our players, staff and supporters, but also the wider rugby community, so we have decided not to play this Saturday," the statement said.
It was hoped that new funding would help with the debt owed to bond holders after they relocated from London.
The club were forced to take action despite saying talks were continuing.
After filing a notice of intention to appoint administrators on September 21st, we have been working hard to secure the long-term future of the group.
The men's and women's rugby teams, as well as the arena and associated business, are currently in negotiations to secure deals that will allow them to move forward.
It has become clear that there is not enough time to find a solvent solution for the companies within the group and it is likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter.
The decision was made after it was revealed that they have insufficient cash to continue operations. Interested parties were asked to give "bridging finance" so that the club could be bid on.
"Unfortunately, this has not been possible to date, but we will continue to pursue this until the very last chance," the statement said.
The future of the arena would be in doubt if the team moved into administration.
The lease of the CBS Arena was granted to the club by the city council when they bought the stadium's operating company.
The council warned the club that the ground could be forfeited.
John McEvoy, an American billionaire, is considering a bid to buy the ground and its other tenant, a football club.
The Sky Blues said in a statement that they were aware of the statement by the group and remained in touch with them.
The other top-flight rugby union club to go into administration in a matter of weeks was the Warriors.
When the news broke, Jack Maunder was in the middle of his pre-game media call.
As the Chiefs won a domestic and European double, Maunder was a part of the team that beat Wasps 19-13 in the 2020 Premiership Final.
Maunder said that his side will play Bristol in a friendly on Saturday and that they know a few of the boys from the two teams.
I feel bad for those boys and the staff.
It seems really sad that they have a great set-up at Wasps.
We don't know what's going to happen with the team. I wish all of those boys the best of luck as they move forward.
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