Birmingham chairman Peter Pannu has warned concerns over attendance levels may lead to a redevelopment of St Andrew's rather than moving to a new stadium.
Initial £20million plans aimed at upgrading the Garrison Lane stand at St Andrew's have been unveiled by the club's parent company, Birmingham International Holdings.
"We haven't categorically ruled out moving stadiums completely but my prime concern is attendances," said Pannu. "Our average attendance does not justify building a stadium of 50,000 to 55,000 at this stage."
City have held talks with Birmingham City Council about the possibility of moving to a new location since Carson Yeung became the club's owner in 2009, but Pannu - Yeung's right-hand man - admits an average attendance of just under 25,00 does not justify moving to a larger complex.
He added: "We have ample support from the local authorities but, with current attendances, it is just not right to do that sort of investment.
"In any case, a lot of our fans want to stay put."
Regarding the plans for the Garrison Lane stand, Pannu said: "There is no timeframe. It could be as soon as two years. It could well be beyond that.
"Of course, if we are in the Premier League, is also one of the considerations.
"This is still at an early stage. This could be self-financed or through naming rights. But it is something exciting."