The news outlet said the league is scheduled to hold a conference call with all of the teams and players Tuesday afternoon.
What changed, if anything - and why Dundon seemed so set on reaching an agreement with the NFLPA so quickly - remains unclear.
The Alliance of American Football, aka the AAF, has been on the verge of folding for the last few weeks and it now appears the league's demise is imminent.
As it stood, the National Football League collective bargaining agreement would not allow several of Dundon's asks, including a flexible system between AAF players and National Football League practice squads.
The news of the league suspending operations is doubly disappointing to the Apollos, who had a league-best 7-1 record and were the clear-cut favorite to win the championship.
Instead, McMahon made a decision to restart his own league; it is scheduled to launch next year.
The AAF had a great opening weekend back in February, playing its first-ever games the Sunday after the Super Bowl and successfully pulling in fans who weren't ready to go months without their favorite sport.
Many thought the recent addition of Manziel to the AAF would help increase ratings.
If this is the end of the AAF, then it won't have lasted even as long as the original XFL did which was one season. This is noteworthy because Dundon's actions suggest he was not willing to wait three years - and invest more money - for the league to become whatever he hoped it would become. "If this company has a chance to survive, if the football is good enough that this has a runway where people are engaged, it will change sports".