Hampden faces a straight fight with BT Murrayfield as the future home of Scottish football after Celtic Park and Ibrox were ruled out.
The Scottish Football Association decided against using the grounds of Celtic and Rangers for Scottish Cup finals and internationals on an ongoing basis following a board meeting.
The SFA’s lease agreement with Hampden runs out in 2020 and a decision on a potential extension is now expected in the summer.
The governing body is not keen on maintaining the same terms over the use of the stadium — it is owned by Queen’s Park — and the Scottish Rugby Union was previously invited to pitch for a deal to use its Edinburgh-based home, which has a 67,000 capacity, 15,000 more than Hampden.
The SFA announced that they had considered submissions from the three Glasgow clubs plus other stakeholders, including the wider membership.
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A statement read: “Each proposal was discussed in detail. The request from Glasgow City Council to review the timescales was also acknowledged.
“Having considered all submissions, the board has decided to develop two options: remaining at Hampden Park beyond 2020 and moving to BT Murrayfield. This decision was taken after considering the financial implications of all proposals submitted.
“The board was unanimous that more work requires to be undertaken. The next phase of the process will begin immediately with a view to final proposals being considered in the summer.”
Peter Dallas, managing director of Hampden Park, said in a statement: “We look forward to working with the SFA board, other key stakeholders and the working group as we develop a final proposal in line with quoted timescales. It has been heartening to receive so much support from supporters, stakeholders, sponsors, the media, local council and MSPs.
“That underlines the special place Hampden Park holds in the hearts and minds of so many as the spiritual home of Scottish footbal.”
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A spokesperson for Celtic said: “We were asked to consider a 20-year commitment and Celtic was willing to enter a transparent partnership process to assess the suitability of Celtic Park to host matches. The SFA has rejected this approach and chosen not to consider Celtic Park. This is something we accept and we wish the association well in pursuing their other options.”