The A-listed Royal High School building had been due to become a home for the independent St Mary’s Music School with a 300-seat venue for public performances.
However the Royal High School Preservation Trust has scaled back its proposals, which included the creation of a national centre for music.
The relocation of the music school , currently in Edinburgh’s west end, had been the main feature of the project in 2015. Increased costs — double the £45 million estimate in 2017 — mean the plans are “no longer practical”.