The Cooks Island government is now gathering more information on what facilities it needs to hold the South Pacific Mini Games in 2009.
The Finance Minister, Sir Terepai Maoate, is writing to the Chinese Embassy to request that a loan confirmation is postponed.
It had been planned to spend four million US dollars on building a new stadium.
But the President of the Cook Islands chamber of Commerce, Teresa Manaarangi Trott, says opposition to the new structure has been evident for some time:
"The options had already been given to government earlier and that option is to upgrade existing facilities so that they can be looked after in the future by communities and by sports codes."
In a statement, Sir Terepai says he and the rest of the Cabinet believes the country has to be realistic and host and affordable mini games.
He says papers are now being prepared for Cabinet setting out all options and indicating the best way forward.