Sources told Yahoo Sports that the concept is "essentially dead to the NFL." according to the report, there are numerous problems with AEG's plan, with the most serious being economics. Yahoo reports the NFL believes the cost for the downtown stadium will be at least $1.8 billion, making it unworkable.
In September, the Los Angeles City Council unanimously endorsed AEG's plan. The stadium will be built on the side of the Los Angeles Convention Center's West Hall, right next to the Staples Center and L.A. Live. The project is also expected to create thousands of much needed construction jobs.
There's also the issue of who is going to buy AEG. Phil Anschutz, who owns AEG, recently announced he wants to sell the company, but it's unclear how that could affect plans.
At a function Monday night, AEG President and CEO Tim Leiweke told the crowd they are moving forward with their plan.
Meanwhile, the NFL has reportedly started to focus on other locations around Los Angeles. A competing stadium is proposed for the city of Industry.
Los Angeles has not had an NFL team since the Rams and the Raiders left after the 1994 season.
Yahoo Sports contributed to this report.