Glamorgan are unlikely to get funding to improve Sophia Gardens. The club had hoped to improve their ground to Test match standards, but the Sports Council for Wales said it had other priorities.
The news is another blow for the club, who had planning permission for a new arena turned down in October, causing their chairman Paul Russell to threaten to move Glamorgan away from Sophia Gardens.
Speaking about the latest setback, the chief executive of the Sports Council for Wales, Huw Jones, said: "We would be delighted to hold discussions with Cardiff council, the assembly government and Glamorgan. However, what must be considered is that funding is in short supply and, at present, the priorities are to increase physical activity of people of all ages in Wales to benefit the health of the nation."