HAVING ruthlessly sacked chief executive Paul McNamee after just four months, Melbourne is considering jettisoning another plank of former chairman Paul Gardner's rescue strategy and scrapping plans to move to the new rectangular stadium at Olympic Park.

It is understood the Demons are rethinking the plan for a home in the stadium and may move the football department into the refurbished MCG Southern Stand — where the club administration is based — occupying the vacated away team's dressing rooms.

The move comes as Melbourne yesterday announced it had sacked McNamee, its eighth CEO in 12 years.

To shift the football department into the MCG the club would need to persuade the AFL and the State Government to support the idea and insist provision be made for the Demons in the redevelopment of the Southern Stand.

Melbourne president Jim Stynes is due to meet Victorian Sports Minister James Merlino this week to discuss options for the club and means by which it can obtain State Government funding.

The team would still train at Gosch's Paddock after Collingwood moves to a new oval to be built on the Olympic Park track after athletics moves to Albert Park.

If Melbourne were to withdraw from the rectangular stadium project the club would forfeit its $250,000 non-refundable deposit.

The MCG option would have lower ongoing costs as the rent currently at the MCG for the administration offices is at a peppercorn rate while the $250 million new stadium would be doubtful to entertain such benevolence.

The rectangular stadium's training facilities and swimming pool are intended to be shared by the Demons, the Melbourne Storm and Victory and potentially a Super 14 team.

The club would continue to pursue Casey Fields as a summer training base.

News of the shift in thinking about a home base for the club came as the new board sacked former Wimbledon doubles champion and tennis and golf administrator McNamee.

Club director Peter Spargo will act as chief executive until a replacement is found.

The club will have to pay McNamee $115,000, just months after it paid about $250,000 to former chief executive Steve Harris in severance.

Three members of the new Melbourne board — Spargo, Karen Hayes and Andrew Leoncelli — were members of the previous board that voted unanimously to appoint McNamee. Stynes had been a member of the working party that short-listed McNamee for the job.

Geelong chief operating officer Stuart Fox is believed to be a favoured candidate for the job. Fox was on the short list of three with McNamee and former AFL player and executive Michael Conlan for the position in the last process.

Fox said last night he was flattered to be discussed as a potential replacement but had had no time to consider his future.

Fremantle CEO Cameron Schwab, who has resigned from the Dockers to return to Melbourne at the end of the year for family reasons, is believed not to be interested in an official club position at this time.

Stynes said yesterday the new board was prepared to give McNamee a chance but ultimately he was "not the right person to take us forward".

"I don't like doing this … I didn't set this as a goal when I met Paul at the beginning, I said, 'Look I'll give you a fair go and we'll see how it runs', but you know, we can't waste time with where we're at because we're under so much pressure, and the job that was required of Paul under Paul Gardner's direction has changed quite a lot since we've come in."