An officer report has recommended that the property and site be put up for sale.
The report is to be considered on 31 January and has already concluded that the revised business case which had been submitted by Splashback, a campaign group, is not commercially viable.
The move follows the agreement of councillors on 20 September to offer an extension to the campaigners and to provide dedicated assistance from the Council's Economic Development unit to enable them to prepare a more robust business case.
-- Advertisement --
The revised submission suggests two options: either to continue operating the venue using existing facilities, or to refurbish the development with a large soft play feature in the glass entrance atrium and create a new café.
But both options, according to Edinburgh Council, would require a significant ongoing subsidy from the Council, for which no budget currently exists.
Neither option would generate the funds required to help pay for the recently completed refurbishment of the Royal Commonwealth Pool.
The process was initially postponed for six months to allow Splashback to come forward with alternative proposals for the pool, which has been closed since January 2012.
A decision was taken in 2005 to put the property up for sale.
Cllr Richard Lewis, Culture and Leisure Convener, said: "I said previously that I would be delighted if an affordable and achievable community bid came forward and I acknowledge the time and effort that Splashback have invested in this.
"We gave the group the opportunity to bring back a more robust bid and it is now up to us as councillors to consider the arguments and reach a decision in the best interests of the city."
(IT)
