The Scottish higher and further education funding councils may have to move from Edinburgh as part of the Scottish Executive's drive to relocate public-sector jobs around the country.
Tavish Scott, deputy minister for finance and public services, announced this week that the councils would review their current location. A decision on the site would be made later in the year, he said.
Mr Scott said: "About 1,250 posts have been located, or are planned to be located, outside Edinburgh as a direct result of our actions over the past three years, benefiting areas from Inverness to Galashiels."
The councils, which are set to merge, are spread over two adjoining buildings in Edinburgh's west end. There is a break option on the lease of one, but the lease on the other runs until 2017.
A spokesperson for the Scottish funding councils said: "We will of course be complying with the requirements to do a complete analysis."