Scotland is one of eight nations to express an interest in tendering to host the 2013 Rugby World Cup Sevens.
Argentina, Australia, Brazil, Germany, Hong Kong, Russia and USA are also in the running.
Scottish Rugby will now examine in detail the possibility of proceeding to the formal bidding stage in December.
"We cannot advance a bid if it were to compromise the overall financial stability of the Scottish game," said SRU chief executive Gordon McKie.
Scotland hosted the inaugural Rugby World Cup Sevens in 1993 and Sevens will be included as a major sport at the 2014 Commonwealth Games in Glasgow.
"Rugby Sevens are very much regarded as the flagship for the global development of our sport - and that gives great pride to us in Scotland given that we gave the game to the world," added McKie.
"But what will be crucial in our deliberations on whether we submit a formal bid for 2013 will be that such a bid must sit alongside our strategic objectives.
"It would be vitally important that the legacy from a 2013 Rugby World Cup Sevens included greater access to quality facilities for the youth of our country and a consequent increase in participation in rugby.
"As part of the exposure for the event we would need to attract a host broadcaster on appropriate commercial terms and as most sports in Scotland will relate that is particularly challenging.
"That said, we look forward to working in partnership with government, both at national and local level and with Scottish broadcasters, as we examine the bid documents."
Scotland won the Plate final at this year's Sevens World Cup in Dubai, beating Australia 21-17 in the final, while Wales won the main event.
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