Council inspectors warned Edinburgh Zoo that its enclosures need vital work to ensure employee safety. If the upgrades are not completed the attraction risks losing its licence in 2012.
The enclosures for both the jaguars and sealions were said to be inadequate by officials. Their report said jaguar pens needed work "to ensure staff safety, hygiene and animal welfare are not compromised".
Sealions could be moved to another facility if improvements are not made.Inspectors said: "Accommodation and water management must be brought up to standard."
Royal Zoological Society of Scotland chief David Windmill said: "This has been resolved." A council spokesman added: "The zoo indicated the conditions can be complied with."