Victorian taxpayers could be set to foot the bill for Scotland to host the 2026 Commonwealth Games using compensation money from dumping the event.

The state in July 2023 axed hosting the 2026 Games, which were set to be held in regional cities, after former premier Daniel Andrews claimed forecasted expenses had nearly doubled to at least $6 billion.

Commonwealth Games officials have scrambled to find a replacement host less than two years out, with Glasgow touted as the likely city to host a “revised” Games.

Commonwealth Games Scotland believes it can host the event at a fraction of that cost and is spruiking an “innovative, cost-effective and sustainable” model.

It would be funded almost entirely from $200 million of Victorian taxpayer money secured as compensation for the state’s hosting withdrawal.

“The project ... does not require - nor has Commonwealth Games Scotland asked for - any underwriting from Scottish or UK governments,” the organisation said.

The event is estimated to cost about $220 million overall, with commercial avenues expected to cover outstanding costs.

“Unlike other major multi-sport events, the concept has been specifically designed to ensure that there is no requirement from the public purse to deliver the Games,” the Scottish committee said.

Glasgow last hosted the Games in 2014, when 18 events were contested, but the 2026 Games will be revised to 10 sports.

It will also be held across a handful of existing sports and accommodation venues to minimise transport, hire and security costs.

The decision on whether Glasgow will host the 2026 Games has been in the hands of the Scottish government since May.

Commonwealth Games Scotland chair Ian Reid said the event presented a chance to bring wide-ranging benefits to the nation and to turn down the Victorian government’s money would be “short-sighted”.

Victoria’s Labor government on Sunday defended its decision to dump the Games, saying $6 billion was too much for a 12-day sporting event.

“When the Commonwealth Games needed a host city to step in at the last minute, we were willing to help - but not at any price, and not without a big lasting benefit for regional Victoria,” a government spokesman said.

Prime Minister Anthony Albanese should have stepped in to ensure Australia wasn’t left “internationally embarrassed”, Nationals leader David Littleproud said.

“This just adds to the embarrassment that the Victorian government imposed on Australia by making an election promise to run the Games, to try and win votes during the election, and then, when it all became too hard, decided to cut and run,” he told Nine’s Today Show.

Decisions to bid for, plan and then withdraw from the Games ultimately cost state taxpayers more than $589 million, including $380 million in compensation to organisers, with “no discernible benefit”, Auditor-General Andrew Greaves found.