The preferred builder has walked away but the NSW sport minister is still promising the $729 million Sydney Football Stadium will be built on time and on budget.
Lendlease, which has been knocking down the arena formerly known as Allianz Stadium, had also been locked in since December as the new stadium's constructor.
Lendlease walked away from the second part of Moore Park project, citing the amount of money the government was willing to pay. Source: SBS
But late on Friday, it walked away from the second part of Moore Park project - citing the amount of money the government was willing to pay.
Amid criticism from the opposition and the Greens, Sport Minister John Sidoti on Saturday tried to ease concerns by saying the stadium would still be completed by early 2022.
"The NSW government always delivers on its promises and we will deliver the Sydney Football Stadium on time and on budget," he said in a statement.
"In a competitive market, we will find the best deal for the people of NSW and work is under way to find a builder.
"The project has always been split into two stages of demolition and construction."
He said the new $360 million Parramatta Stadium was delivered on time and on budget while North West Metro build was $1 billion under budget.
Greens MP David Shoebridge, who supported a community bid to stop the stadium being demolished, said it was "always a joke" that the government priced the project at $729 million before it was designed.
"Now they have demolished the stadium and are just now finding out they can't get it rebuilt for their initial estimate," he tweeted.
"What kind of government knocks down a functioning piece of infrastructure before they have designed or priced its replacement?"
Opposition sports spokeswoman Lynda Voltz said Premier Gladys Berejiklian promised at the March election she had the project under control.
"Well, the election's over and the wheels have fallen off the bus," she said in a statement to AAP.
"There is a demolished wreck in the middle of Sydney tonight and Gladys Berejiklian has no plan to fix it."
Lendlease on Friday said it was pleased to have worked on the demolition part of the stadium project and looked forward to supporting future "social infrastructure" projects.
