Councillors had been given the choice to either find the money to save the stadium or face closing it within five years.

At a meeting of the council’s policy and strategy committee yesterday, the green light was given to refer proposals outlined in a report on the future of Scotland’s first Commonwealth Games venue to the council’s Budget meeting on 12 February.

Members will be asked to agree funding of £100,000 to carry out a ground survey to better understand the conditions of the existing Meadowbank site, and to prepare a development brief.

Councillor Richard Lewis, culture and sport convener for the City of Edinburgh Council, said while further work is still required on possible funding solutions, the decision means a brand new Meadowbank with facilities fit for the 21st Century “remains a real possibility”.

He added: “The decision on whether or not the venue will be rebuilt is subject to addressing the funding shortfall of £11.3m - £19.8m, but members have agreed to consider the future of the venue as part of the Council’s wider Budget discussion in four weeks time, and to also look into all funding options before a final decision is made. If the Council decides not to proceed, options for a planned withdrawal of service at Meadowbank over the forthcoming five years will need to be looked at.”

Should funding be agreed by Council on 12 February, a new Meadowbank would include:

Funding options and architectural design concepts for replacing Meadowbank, which was originally built for Edinburgh’s 1970 Commonwealth Games, have been developed with input from relevant governing bodies of sport.

The plans would see the existing site transformed into a brand new sports centre that would serve the sporting needs of the local community as well as the city and east of Scotland with facilities for physical activity, health and wellbeing.

The funding proposals estimate the overall cost of building a new Meadowbank facility as £43m. It is envisaged that this will be achieved through funding from SportScotland of between £5m to £7m; revenue savings to the council from closing the facilities during construction; prudential borrowing based on forecasts for net income and through the sale of surplus land at Meadowbank. This would leave funding required to be identified by the Council of between £11.3m and £19.8m.