The original design would cost almost twice the £75million budget to build and Olympics minister Tessa Jowell has ordered the project back to the drawing board.
Architect Zaha Hadid has been told to bring costs in line with
original estimates. However, the sport's national governing body have insisted a world-class facility is necessary for the London Games and have urgedorganisers to reconsider.
Chief executive David Sparkes said: 'It is the view of the ASA that specification for the pool in Games and legacy mode is absolutely non-negotiable.
'It is now for the architects and engineers to come back with a realistic solution maintaining the integrity of the facility.
'This facility was a key part of securing the Games for London and the vision sold to the IOC must be delivered.'
Government officials have refused to confirm or deny that the venue will have to drastically cuts it capacity, with a Department of
Culture, Media and Sport spokesman saying last week : 'This is pure speculation.'