Curzon Street Station, the Grade l listed building at Birmingham Eastside, is in danger of remaining empty for the forseeable future following the collapse of a £9 million refurbishment plan.
City council officials admitted it would be a case of "back to square one" after the Royal College of Organists pulled out of a scheme to turn the former rail terminus into its national headquarters.
Although the council has set aside £2.4 million towards refurbishment and is actively pursuing potential clients to take on the early 19th century building, no one has yet expressed firm interest.
It emerged yesterday that grants worth several million pounds from the Heritage Lottery Fund and the EU would have to be renegotiated if and when a new use for the building can be found - setting back by several years the timescale for renovation.
Curzon Street Station, which is owned by the council, has been empty for four years and its fabric is beginning to deteriorate. Politicians are blaming each other for the latest turn of events.
Sir Albert Bore, leader of the Labour opposition group, said the council had not done enough to help the RCO bridge a financial gap.
Mike Whitby, leader of the council, said he was confident the RCO would be found alternative premises and would still establish headquarters in Birmingham.
Coun Whitby (Con Harborne) said: "To imply that this council has not done what all that it could to help the RCO is to spread disinfomation.
"We worked very hard to try to secure the relocation of the RCO and we will continue to work to make sure they stay in Birmingham."