Rothesay council voted to stop exploring the idea of a fieldhouse after the proposal sat idle for nearly seven months on the agenda.
Mayor Bill Bishop said the $22-million to $30-million estimated cost for the multipurpose complex was too high for the town.
"We've been talking about it for some time and some of the councillors felt there was enough talk and now we needed action, either proceed or cancel the fieldhouse," Bishop said.
"We're now interested in satisfying the needs of the citizens by looking at another structure."
The next option is to build a new arena at a cost of $7 million to $8 million and refurbish the old arena for indoor soccer.