Manchester City's Maine Road ground will not be used by rugby union side Sale Sharks when the Blues vacate it this summer.
Sale had been interested in playing their home games at the ground from next season onwards, when City will be moving to the City of Manchester Stadium, used for the Commonwealth Games.
But the Sharks do not feel a move to Maine Road would be viable and so will continue for the foreseeable future at their current Heywood Road ground.
The leader of Manchester City Council Richard Leese said: "We have explored fully a range of options with Sharks RUFC and we cannot find a situation which benefits both the city and the club.
"We were very keen to see rugby at the stadium, but will now move forward and discuss with the residents a wide range of options to improve the area using different routes.
"It's been very helpful to explore all options with Sharks and we'd like to thank them for the time they have put into examining the possible development. We wish them well in the future."
Sale chief executive Niels de Vos added: "The City Council has been very co-operative working with us, to discuss in detail the possibility of a move to Maine Road and we would like to thank everyone involved for their efforts.
"We have been very interested but unfortunately it is not possible to proceed to a successful conclusion which gives confidence that Sharks can operate viably at Maine Road.
"We are confident that both sides have done everything within their power to try to succeed but it is now time to move forward in another direction."