The news, announced on Thursday, came as a shock to both the Elders Street site's owner and the ACT government, who had been working to move the bowlers to Gungahlin.

The 90-year-old club's future now hangs in the balance as the bowlers lease runs out about Christmas and the site's owner, Nik Bulum, is working to redevelop the block into townhouses.

The Braddon site was last year bought by developer Mr Bulum, who gave the bowlers an extension while the Ainslie Group worked to relocate the club to new bowling greens at its Gungahlin Lakes Golf and Community Club.

The Ainslie Group had promised to complete the relocation by July, but the board deferred its decision until the ACT government responded to a funding proposal.

Ainslie Group chief executive Simon Patterson, in a statement on Thursday, said: "The Ainslie Group has today announced that the bowling greens project at the Gungahlin Lakes Golf and Community Club has been placed on indefinite hold."

Mr Patterson could not be contacted for further comment.

However, former Ainslie Group president Malcolm Scholes said the club had been forced to report a loss for the second year running, as it had not yet recovered from a refurbishment of the Ainslie Football Club.

He said the situation had taken the board by surprise and it had been unfortunate that the bowlers would suffer as a result.

"[But] To spend money on non-revenue generating activities at the moment would be reckless," Mr Scholes said.

Mr Bulum had not heard of the decision when contacted by The Canberra Times.

He said he could not comment on a further extension until he received more information.

It is understood the announcement also took the ACT government by surprise.

A spokesman said the government had been working with the Ainslie Group over the past few months on the proposal.

"We are still actively considering the proposal but will now need to seek a further conversation with the Ainslie Group to understand the reasoning and timing of this announcement" he said.

Earlier this month, Mr Patterson told The Canberra Times that the unsolicited proposal to the government related to an undeveloped block in Casey that had been earmarked for a bowling green more than a decade ago.

He did not not say how much the club had asked the government for, other than to state the "significant amount" was "commercial-in-confidence".

Mr Patterson also said the Ainslie Group's board was unlikely to make a decision about the future of the bowling club until it heard back from government.

However, he did say that the Ainslie Group will continue supporting bowls, no matter the decision.

Canberra City Bowling Club members voiced concerns they could be left without a home.