The $729 million knock-down and rebuild of the Sydney Football Stadium has been thrown into chaos after the NSW government said construction giant Lendlease would not complete the project.

Sports Minister John Sidoti said Lendlease had not been able to meet the government's requirements to rebuild the stadium on the Moore Park site on budget by 2022.

The remains of the stadium at Moore Park. Credit:Brook Mitchell

"The project budget for Sydney Football Stadium is $729 million which includes stage one [demolition] and stage two [reconstruction] works," Mr Sidoti said.

"Lendlease’s stage two offer did not meet the government’s expectations so we are looking for another builder in a competitive market."