Commonwealth Games Australia is offering Scotland a multi-million dollar investment to help save the 2026 Games.
Scotland's government is warning of the financial risks of Glasgow stepping in to save the '26 Games after Victoria withdrew as hosts last year.
The Scottish government had been expected to rubber-stamp an offer to host from the Commonwealth Games Federation (CGF).
The CGF is offering Scotland almost $A200 million - money coming from the Victorian government's $A380m compensation for reneging on hosting.
The Scottish government had asked the United Kingdom government to underwrite the Games and chip in about $A4.5m to cover any security cost blowouts.
But the UK refused and Scotland's government has said it won't use any public monies.
Both the Scotland and UK governments say they support Glasgow hosting the Games, as the city did so successfully in 2014.
But the next edition would be reduced to between 10 and 13 sports, roughly one-third less than the 2022 Games in Birmingham, England.
Now, though, the fresh financial stand-off has cast doubt on the '26 edition proceeding.
Commonwealth Games Australia (CGA) says it's willing to give Scotland millions of dollars to help secure the future of the Games.
An amount has not been specified but it could be in the vicinity of the $A4.5m that Scotland wanted from the UK.
CGA president Ben Houston said it would be "a multi-million pound investment".
"Commonwealth Games Australia welcomes the enthusiasm for the Games by the Scottish and UK governments," Houston said.
"And we want to do all that we can to make Glasgow 2026 a reality.
"We appreciate that the model is different and that creates perceived financial and reputational challenges.
"But we have every confidence in the model proposed by Commonwealth Games Scotland.
"As one of the beneficiaries of the settlement with the Victorian Government, we today commit a multi-million pound investment into the Games to be further negotiated with Commonwealth Games Scotland and the Scottish Government.
"Now is not the time to walk away from a Games that has inspired for generations.
"And we look forward to working collaboratively toward an outcome that benefits Commonwealth nations, their athletes, coaches and fans."
Houston said the Games were vital in the lead-up to Brisbane hosting the 2032 Olympics.
He said 46 per cent of Australians athletes compete for the nation for the first time at a Commonwealth Games.
And 51 per cent of Australians who medal at the Commonwealth Games also medal at their next international competition.
"The Commonwealth Games are at the heart of Australia's performance pathway, often providing the launch pad for continued and ongoing success," Houston said.
"They are irreplaceable in terms of providing global competition and, in the absence of an Australian host, it is in the interests of Australian sport that we make an overseas Games a reality."
Commonwealth Games Australia receives no funding from the Australian Government with its income coming from private investments and commercial revenue.
