Sheffield Eagles are still hoping to make a return to their home city in 2018.
But they have been dealt a blow with the news that they are not the preferred bidder for the new stadium, due to be built on the site of their former Don Valley Stadium home.
The Eagles have had to play the whole of their 2017 season 30 miles away at Wakefield.
Eagles General Manager, Liam Claffey, said: “Whilst the news and decision is not the preferred option of Sheffield Eagles, the club will work with all parties to ensure the club is back in Sheffield and at the Olympic Legacy Park in 2018.
“The decision made by the Olympic Legacy Park Ltd will now be passed to Sheffield City Council to make a final decision and the club are continuing dialogue with them as well.
“The club apologise that no further news can be given at this stage but will provide more information as soon as we can.”
The Eagles have been keen to gain preferred bidder status, which would enable them to earn from secondary revenue streams, crucial for the sustainability of the club moving forward.
However, it is believed that Sheffield United co-owner Kevin McCabe wants the stadium to be the home of the club’s ladies team.