The show is moving from Burbank, Calif., to Manhattan next year after Fallon takes over as host from Jay Leno.
The Hollywood Reporter said NBC planned for months to spend $25 million to combine Studios 6B and 8G at 30 Rockefeller Center and build a new 400-seat theater.
However, the network has since decided in favor of a $5 million renovation of Studio 6B, the current home of "Late Night with Jimmy Fallon."
The revamped studio will have a new look and be able to seat 240 people instead of 189, the entertainment industry trade newspaper said.
Megyn Kelly: Santa Claus and Jesus are both white men
Penelope Cruz named 2013's 'Best Body' by Fitness magazine