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On Friday, Inter and AC Milan rejected the proposal to modernize and renovate the iconic San Siro stadium, which they share, according to Milan’s mayor, Giuseppe Sala.

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“The two clubs have declined the San Siro restructuring project proposed by construction group WeBuild,” Sala said after meeting with representatives from both clubs. “Their technical and economic feasibility analyses concluded that the project cannot be carried out at a sustainable cost, and they do not wish to pursue it.”

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However, both clubs are open to reviving their initial plan for a new stadium near the current San Siro site, Sala added. “We’re not starting from scratch on this, but there is opposition from local residents,” he noted. “They must submit a project soon, but building stadiums in Italy is always a very complex process.”

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Both clubs, who share 10 European championship titles between them, have expressed their desire to leave the San Siro, which is owned by the city, in order to boost commercial revenue.

Officially named the Giuseppe Meazza Stadium, the 80,000-capacity San Siro was built in 1926, but it no longer meets the modern needs of the clubs. Each team also has separate stadium plans in progress. Earlier this year, AC Milan purchased land in the San Donato Milanese suburb, south-east of the city, to facilitate their move away from San Siro. Reigning Serie A champions Inter are exploring locations in Rozzano and Assago, just south of Milan, and have considered building on former industrial land in the northern suburb of Sesto San Giovanni.

Despite the uncertainty surrounding the stadium’s future, San Siro is scheduled to host the opening ceremony of the 2026 Milan-Cortina Winter Olympics and the 2027 Champions League final, though the latter could be reconsidered, according to Italian media reports.