The document, produced by an independent working group set up to look into the scheme, stated that redeveloping the existing Meadowbank site would be the 'best option', adding the proposed move to Sighthill should only be taken if the council has 'failed to find an alternative means of funding'.
Edinburgh council had wanted to sell the Meadowbank site off to a private developer, which would turn the historic stadium into flats while paving the way for a new rugby and athletics arena at Sighthill following FaulknerBrowns' designs.
However, this plan now looks in serious doubt, as Lib Dem council leader Jenny Dawe will come under serious pressure to find funding for the transformation of Meadowbank.
Following the publication of the report, Dawe said: 'We are committed to moving this issue forward, but it is essential that we do this in consensual manner. This can only be achieved by listening to and addressing the concerns of all members of the group and the wider community.
'We all want the best facilities for Edinburgh, but we must be realistic about what can be achieved. Therefore the next thing we must do look in more depth at the options, at what funding we have available and can access, and in light of this, what we can deliver.'