Instead, homelessness officials will focus on homelessness prevention, private sector accommodation and turning the former St Fittick's hostel in Torry into accommodation.
Officers were granted delegated powers by councillors at the June full council meeting to find solutions to the problem of homelessness in Aberdeen.
They have now studied alternatives to the Aberdon House scheme, which would have seen the Tillydrone property converted for use as temporary accommodation.
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Following a detailed assessment of alternatives, costs and timescales, they have now recommended a solution based on leasing schemes with the private sector, increased investment in homelessness prevention and making use of the former St Fittick's Hostel.
Their recommendations were presented on Thursday to Housing and Environment convener Councillor Aileen Malone and Deputy Council Leader Councillor Kevin Stewart.
Councillor Malone said: "The Aberdon House proposals were always intended to be a short-term fix to solve some of our homelessness issues but our officers are now making it clear that we can make progress more quickly, more cost effectively and longer term by concentrating on these alternative plans.
"Following the detailed assessment of the alternative proposals, including the use of St Fittick's, I am more than satisfied that this is a commonsense solution. The building needs minimal investment to make it fit-for-purpose and can be delivered in a short space of time."
Councillor Stewart added: "We have a statutory duty to provide accommodation for homeless people. We need to act quickly to carry out that duty. Thanks to the hard work of our officers, we now know we have a property that fits the bill and can get busy very quickly on providing the necessary accommodation."
(GK/KMcA)
