It was reported earlier this week it was still hoping that the Super League club would eventually move to land on Newmarket Lane, where planning permission was granted back in 2012 for a new ground.
Its development, which was expected to have been completed by the firm Yorkcourt, subsequently didn't happen.
On Wednesday, the authority said that they were giving Trinity a £3.15m loan to buy their current Belle Vue ground, which will now be refurbished to meet new standards.
Deputy council leader Denise Jeffery said in a statement that the authority was "committed to working with the club to support the development of a community stadium".
It was believed she was referring to the Newmarket Lane site, over which talks with Yorkcourt were still recently taking place.
But the authority has now said that Coun Jeffery was actually referring to improvements of Belle Vue, where the club is now expected to stay.
A spokesman for the council said: "The proposed development at Newmarket is no longer the preferred option for the club once this land deal goes through."
Wakefield Trinity and Yorkcourt have both been contacted for comment.