The stability of the receding front at the growing rim of a thin liquid film dewetting from a substrate is studied. The underlying forces that drive the dewetting motion are given by the intermolecular potential between the liquid film and the substrate. The role of slippage in the emerging instability is studied via a sharp-interface model for the dewetting thin film, which is derived from the lubrication model via matched asymptotic expansions. Using the separation of the time-scale for the slow growth of the rim and the time-scale on which the rim destabilises, the sharp-interface results are compared to earlier results for the lubrication model and good agreement for the unstable modes is obtained. The main advantage of the sharp-interface model is that it allows for the derivation of traveling solutions for the base state and subsequently a systematic linear stability analysis via normal modes. Interestingly, unlike the dispersion relations that are typically encountered for the well-known finger-instability in thin-film flows, where the dependence of the growth rate on the wave number is quadratic, here it is linear.Keywords Asymptotic methods · High-order nonlinear boundary-value problems · Sharp-interface model · Stability analysis · Thin liquid films