Meadowbank Stadium would be demolished under new plans and replaced with a smaller £25m arena.
The proposals set to go before councillors on Thursday would see the capacity of the stadium reduced from 16,500 seats to about 5,000.
The smaller stadium would mean some of the land could be sold off for housing with the money used to pay for the new stadium along with grants.
Plans to build a new stadium in Sighthill were shelved last year.
On top of the £25m construction costs, it is thought about £5m would be spent on fitting out and developing the new centre.
Commonwealth Games medallist Chris Black, who is against part of the site being sold off to make way for a smaller stadium, said: "If my wife asked for a new kitchen she would get it when we can afford it.
"If the council was her husband they would tell her she could only get it if she sold part of her lounge.
"We seem to be fascinated about refurbishing Meadowbank. It is structurally sound.
"It will still be there in 10 years time, maybe with its paint falling off, but we would still have all of Meadowbank. You don't upgrade it by selling off half of it."
Jim Inch, Edinburgh City Council's director of corporate services, said in a report: "Major refurbishment of a large and complex building always carries the risk that unexpected defects and problems will be uncovered as the project progresses.
"It is my view that a development appraisal is required for a new build at Meadowbank, this appraisal to include an analysis of the options for land disposal.
"A provisional estimate of £25m has, however, been used as a guide figure for a new build option, with £6m from the council's capital budget 2008-2011, a capital receipt of around £17m from the disposal of land at the west end of the site and an estimated £2m from sportscotland.
"This estimate is for construction costs only, including professional fees, fit out and development costs this sum would increase to around £30m."