“Fewer sports across fewer sites, but with good collaboration we could see something coming forward that is still positive for Glasgow and for Scotland.”
He said discussions were ongoing and stressed that “making sure there is no financial risks to the government is critically important”.
The UK Government last week assured the Scottish Government that no public money would be required to stage the games.
Earlier, Commonwealth Games Federation (CGF) president Chris Jenkins said Glasgow would deliver a “world-class” Games and create a model for the future.
He said the Australian funding pledge would “further enhance and support” the bid to bring the event back to Scotland, which would be co-funded by a CGF investment of £100 million ($213m), plus private income.
He said: “In utilising existing sporting, transport and accommodation infrastructure, and world-class venues and expertise, the compact concept would not only build on the legacy of Glasgow 2014 but would position Scotland as pioneers at the start of our journey.
“This forward-thinking, sustainable and attractive proposition is something we are hugely passionate about as it will allow more countries to host these games in the future.
“We believe our new Games model will lead the way for others to follow.”
The 2014 Games included an opening ceremony at Celtic Park, as well as athletics at Hampden, which also hosted the closing ceremony.
But only four venues would be used in 2026 – including Scotstoun Stadium and the Tollcross International Swimming Centre.