UK Sport have pledged financial assistance for Scotland's bid to stage the European Championship in 2008 but only if the campaign for a solo bid gets backing from the Scottish Executive.
UK Sport's council have agreed to contribute Stg£425,000 after examining the Scottish Football Association's plans and an independent report showing significant economic benefits for Scotland from hosting the tournament.
Major Events Steering Group - a group of experts in delivering major sporting events - had studied the SFA's proposals.
This latest development appears to further lessen the chances of a joint-bid with the Republic of Ireland.
The council insists their offer is based on the condition it was a Scotland-only bid with the Scottish Executive guaranteeing the infrastructure required under UEFA's bidding criteria.
"This is certainly one of the most significant sporting events that Scotland could stage and there may never be a better time than now to bid," said UK Sport chairman Sir Rodney Walker.
The SFA welcomed the announcement claiming they have what it takes to bring the European Championships to Scotland.
The Scottish Executive's support is vital to the chances of a Scottish bid going forward and Walker was encouraged by the Executive's approach.
"It is clear that the Scottish Executive is undertaking a thorough examination of the draft bid," he said.
"Clearly the anticipated benefits that could flow from hosting the Championships would be an attractive bonus for the Scottish economy.
"Our decision obviously sends a strong signal to the Executive of how we view the bid from a strategic perspective and ultimately our funding is dependent upon their active support."
Nations considering a bid to host the Championships must lodge their intention to bid with UEFA by the end of February.
PA