MSPs said: "The committee recommends that public bodies should select the method of financing which delivers best value to the taxpayer."
Only a minority of MSPs on the committee endorsed the view that the "non-profit-distributing organisation" should be the default option with the report saying it was "difficult to determine" if NPDOs are any cheaper.
The news will come as a blow to the Scottish National Party who have failed to gain any momentum on introducing the new scheme. The report said that: "it has been noted through the SFT consultation that the private sector has raised concerns over the downturn in infrastructure dealflow."