Historic Scotland has refused permission for the proposed 30ft tall and 60ft wide Olympic Rings logo to be displayed on Edinburgh Castle.
The original proposal would have fixed the enormous multi-coloured Olympic symbol to the Castle ramparts from New Year’s eve onwards for a period of nine months.
Outrage was the immediate reaction of most Scots and the large majority of Edinburgh inhabitants. Historic Scotland originally appeared favourable towards the suggestion but has now said it won’t allow the London 2012 organising committee to place the rings against the castle.
A spokesman for Historic Scotland said: “Historic Scotland has taken the decision not to permit the Olympic Rings to be displayed on the ramparts of Edinburgh Castle.
“Following careful consideration it is clear that the proposal would not be suitable for the successful operation of Scotland’s most popular heritage attraction.
“It may well be that there are other more suitable sites in Edinburgh, and the Scottish Government and agencies will work with LOCOG and The City Edinburgh of Council to do what we can to assist with the consideration of alternatives.
“We fully support the Olympic Games and we look forward to hosting the Speed of Light event on Arthurs Seat to combine visual art with sporting endeavour and a number of our sites are on the Olympic Torch Relay route, including Edinburgh.”
The London 2012 organising committee is believed to be considering locating the rings elsewhere in the Capital.