London Welsh chairman Bleddyn Phillips says returning to Old Deer Park is not in keeping with the club's ambitions for success, unlike staying in Oxford.
The Exiles' relegation to the Championship was confirmed following Newcastle Falcons promotion to the Aviva Premiership this week after the play-off win over Bedford Blues.
After moving to the Kassam stadium in Oxford last summer on the back of winning promotion to the Premiership last season, the Exiles' relegation and subsequent drop in revenues sparked rumours of a return to their ancestral home.
However, Phillips believes Lyn Jones' men have made a solid base for themselves in Oxfordshire, and that their future lies away from south west London, although not necessarily at the Kassam.
In a statement, Phillips said: "We must ensure we have a solid and commercially viable 'home' ground from which we can build upon and develop in the short, medium and long term.
Times past: Exiles' Paul Sampson celebrates a try over rivals Esher at Old Deer Park in 2011
"While some might understandably contend that we should now return to our long established home at Old Deer Park, there appears to be a much larger element among our supporter base who favour building upon and enhancing our increased and hugely committed following in the Oxford area, drawing not only from the local communities but also the long standing and incredibly loyal fans from Old Deer Park.
"This of course is also closely linked with the need to be commercially viable at the top flight of club rugby and the level of attendance for 'home' games is likely to be demonstrably higher if we continue to play in the Oxford area and thereby strengthen our following and support base."
He added: "There are at least two or three opportunities available to us in terms of ground location in the region for next season - including the Kassam Stadium where we have the option but not obligation to renew.
"There have been a number of discussions with several grounds and local clubs and we are very close to finalising what we trust will be an optimum solution for the club in both financial terms as well as the level of facilities available next season.
"This of course is in addition to returning to Old Deer Park which remains very much an option but which is perhaps less consistent with an avowed intent to remain a strongly competitive Championship/Premiership club."
Times present: Exiles' Tom Arscott tackles Tom Vardndell of London Wasps at the Kassam stadium Picture: Action Images / Frances Leader Livepic
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