Met by reporters after the meeting with Tuanku Mizan Zainal Abidin at the Istana Negara, Ambiga said the coalition for free and fair elections "will cooperate with the government and accept their offer to have the event at a stadium".
"Therefore, the rally on the street will not take place," she said when met outside the gates of the national palace.
They do not know which stadium the event will beheld in, but it will be announced at a later date, said the former Bar Council president.
"We are very grateful for the meeting (with the Agong) and will accept the government offer," she added.
Asked whether the decision reflected a compromise on the part of Bersih, Ambiga said it was given the circumstances.
Ambiga, Bersih 2.0 steering committee member Zaid Kamaruddin and national laurate A Samad Said (right, in baju Melayu) had arrived at the Istana Negara gates about 1.55pm.
The trio had earlier refused comment when approached.
Yesterday, Bersih 2.0 submitted a formal request for an audience during which they intend to explain the movement's position and seek the Agong's advice on the rally.
Bersih 2.0 had requested for the audience because the Agong had issued a special statement on Sunday night.
The Agong had said that, while it is incumbent on the government to fulfill its responsibilities in a "just and wise manner", street demonstrations would bring more harm than good, even if the original intention is good.