A new waste disposal facility could be built on the land earmarked for the King’s Lynn incinerator.
Norfolk County Council says it is assessing the future of the site in Saddlebow, which West Norfolk Council also hopes to buy.
Cabinet member for finance Steve Morphew says the council is not ruling anything out but is not going to be rushed through the process.
He also said the council needs to find a new way to deal with the county’s waste but said it was too early to say what kind of could be.
Mr Morphew added everyone would prefer the proposed facility not to be an incinerator following the controversy.
Mr Morphew said: “We are making an assessment of what the future needs of the county will be and we are not going to be rushed. This will be for the committee structure to make a decision but we are not ruling anything in or out. No-one should draw hasty or inappropriate conclusions.
“We are not going to take the very first offer from anyone without going through the right processes.”
Leader of West Norfolk Council Nick Daubney has been shocked by the news.
He said: “I think it is very disappointing.
“I really feel that we had offered a considerable part of a solution to the financial problem.
“I think we are missing a big opportunity to build bridges between ourselves for the good of Norfolk.”
The contract with Cory Wheelabrator was terminated on Friday last week.
The final settlement figure will not be identified until July but officers are expecting it to rise to £33.3 million due to hedging arrangement in the contract. The authority has set aside £30 million.
The county has to pay the hedging element within three working days and is looking over Cory Wheelabrator’s claims.
The full council will be making a decision on is due to consider a recommendation from Cabinet about the costs of terminating the contract on Tuesday, May 27.