The club is exploring the possibility of constructing a “mini-Murrayfield” on the training pitches beside the home of Scottish Rugby.

It is understood proposals for a 7,000-seat stadium are at an early stage and no application for planning has yet been made, but with objections it could be up to five years before the idea comes to fruition.

BT Murrayfield is regarded as one of the finest stadiums in world rugby, but is only at capacity for Scotland international matches. Edinburgh Rugby – one of two Scottish professional teams along with Glasgow Warriors – is attracting crowds of under 5,000. It is hoped a smaller stadium that would ­regularly sell out for home matches would provide a strong base for the team, which plays in the Guinness PRO14 league.

The club has had several ­temporary homes across Edinburgh, including Meadowbank, Murrayfield and ­currently Myreside.

A source said: “If Edinburgh Rugby grow their crowds even by a modest amount, then everyone knows Myreside will struggle to cope with that.

“The SRU could invest in Myreside , but what would be the point of investing in someone’s else’s land when there is spare land at Murrayfield and developers looking to get involved.”

The back pitches at Murrayfield have long been viewed as ripe for development, especially as property values in the area are high. But flooding of Murrayfield in 2003 and a subsequent public inquiry, together with the property crash, halted previous redevelopment ideas.

The property market has since recovered, the hotel sector is buoyant and a tram stop has been built close to the stadium, significantly improving transport access to the site.

Flood prevention work has also been completed at the site.

Proposals have recently been floated for a hotel and flats on the site by developer Murrayfield 2020.

A spokesman for Edinburgh Rugby declined to comment at this stage, but indicated more details would be revealed soon. No figures have been revealed, but it is understood the stadium could cost in excess of £10 million.

It is not clear if the proposed new stadium would be available for other sports or events.