The Lancashire club have confirmed they had held "a cordial and productive meeting" with representatives of Bahrain-based Syed's investment firm Western Gulf Advisory.
Syed, a 36-year-old lawyer, wants to complete a buyout of the Ewood Park outfit within two weeks and hand manager Sam Allardyce £100million to spend on players before the transfer window closes.
Rovers, who are run by the trustees of late owner Jack Walker's estate, have been looking to sell the club to a suitable bidder for the past three years.
By confirming they were now in talks with Syed, the club have given their clearest indication yet they believe they may have found a credible option.
A short statement read: "Blackburn Rovers can confirm that officials have held a cordial and productive meeting with Western Gulf Advisory (WGA) staff and advisers concerning a proposed takeover of the club. The process is ongoing."
Source: PA
