UK Sport is to stop providing financial support to host the Commonwealth Games Federation (CGF) head office in London, in a decision that will take effect shortly after the body responsible for direction and control of the Commonwealth Games moves to new premises in the UK capital.
The decision to discontinue the £75,000-a-year ($126,300/€92,000) funding after September was taken at a Board meeting of the body, which mainly channels finance to Britain's elite Olympic and Paralympic athletes, on March 18.
UK Sport also decided to inform CGF at once, to provide it with "immediate clarity as it considers its future location".
The CGF, which has six full-time staff based in London, is obliged to move because its lease on offices at a building in Piccadilly owned by EON Productions, the film production company that makes the James Bond movies, is due to expire in July.
It plans to move to a location in Old Street in Shoreditch, and to base itself at offices run by CAN Mezzanine, a company which provides affordable office space exclusively for the social sector.
The move is expected to take place in June so staff are in situ and fully operational by the time the Glasgow 2014 Commonwealth Games open on July 23.
But the organisation's longer-term future in London, its home since it was founded in 1932, is also under question.
Earlier this year, CGF President Prince Tunku Imran dropped controversial plans to relocate the offices to Kuala Lumpur after his initial proposal was criticised.
He has now commissioned an independent report to find out whether the CGF should remain in London or whether it would benefit financially and operationally from relocating.
The CGF is also in the process of selecting a new chief executive to replace Mike Hooper, who is due to step down in August after 14 years in charge.