Ambitious plans to transform an ageing sports venue that has twice hosted the Commonwealth Games could take a step forward next week.

Councillors will meet on Thursday to discuss a report on how the new Meadowbank Sports Centre should be funded.

The overall cost of the project has been estimated at £41.1m and the council is expected to need to plug a funding shortfall of £6m.

A full meeting of the council will consider if £700,000 should be spent on detailed design works to establish the exact cost of the project and subsequently put it out to tender.

The move would also enable the local authority to apply to sportscotland for up to £7m of funding, which the body has already pledged in principle.

Remaining funding for the project would be generated by capital receipts from surplus land at Meadowbank, borrowing and revenue savings from closing the complex during construction.

Two hectares of surplus land at the site would be transferred to the council’s 21st Century Homes programme to provide affordable housing and student flats.

Council leader Andrew Burns said: "While it is a significant investment for the council, creating a detailed design would give us greater clarity about how much money we need to invest.

"Not only would we see a new Meadowbank but more homes would be built to meet the city’s housing needs."

Culture and sport convener Richard Lewis said the project had been led by a cross-party group.

"This is another stage in the jigsaw puzzle, albeit a crucial one," he said.

"Transforming Meadowbank into a brand new sports complex would provide a modern, fully accessible high quality sports centre for sports clubs and local communities.

"The new venue will bring health and well-being benefits across the city."

The funding options and design concepts for replacing Meadowbank, which was originally built for the 1970 Commonwealth Games in Edinburgh, have been developed with input from sport agencies and sportscotland.

If the funding shortfall is addressed then demolition could begin in late autumn 2017, with a new Meadowbank opening in summer 2019.