The new Supreme Court is unlikely to get its own, purposebuilt home.
The Lord Chancellor's Department seems to have ruled out building a major new court complex to house the flagship of Tony Blair's constitutional reforms.
Appearing before the House of Commons'Constitutional Affairs select committee, Lord Falconer revealed that he now favours a move to either Middlesex Guildhall or the new wing of Somerset House in the Strand.
A spokesman for Falconer said: 'Nothing has been absolutely ruled out forever.
'It is possible neither of the sites is sustainable, but part of the thinking is that we have to get on with this, ' he added. 'It is not the case either that the decision is just about money, but that is important.'
Last year RIBA president George Ferguson wrote to Falconer outlining his support for a new courthouse.
However, speaking last week, he said he was not surprised by the decision. 'A fresh start would have been my preference, but I accept the practicalities, ' Ferguson said.
'Though it's an opportunity lost to build, it's also an opportunity gained to do something with an historic building.
'If it's a second best, it is a good second best, ' he added.