Stephen Larkham's arrival had been much anticipated by Edinburgh

Scottish Rugby Union chief executive Gordon McKie plans talks with the 32-year-old and his agent this weekend.

But it appears unlikely that Larkham will now sign for the Scottish club as the SRU does not wish to fund the deal.

Edinburgh had announced that the Brumbies player had agreed a two-year contract, due to start in November.

Interview: SRU chief executive Gordon McKie

But, although the SRU this week revealed that it had reduced its debt by �3m to �17m, the summer's events will impact negatively on next year's figures.

It is thought that scrapping the Border Reivers will cost the parent body �1.75m, while the burden of being Edinburgh's paymasters will add another �2m.

MY SPORT: DEBATE What do you think of the possibility of losing Stephen Larkham?

Edinburgh have already lost nine internationals during their summer of infighting with the SRU.

The departure of Simon Taylor, Scott Murray and Chris Paterson were particular blows.

Larkham had insisted he was not looking for a few quiet years to wind down a glittering career after deciding he would retire from Test rugby after this year's World Cup.