A Welsh Rugby Union (WRU) bid of between £15-20m to buy Cardiff Arms Park has been rejected by the ground’s current owners.
The management committee of Cardiff Athletic Club (CAC) has decided it will not put the offer to its members.
In February its tenants, the Cardiff Blues rugby region, said they were considering moving after talks stalled over the lease of the ground in the city centre.
The chairman of the CAC’s management committee, Keith Morgan, said that at a meeting on Monday evening “there was a lot of uneasiness about selling the freehold of the iconic site”.
CAC has reported its decision back to the WRU, and said they were prepared to continue negotiations for a long-term lease.