Legal challenges block legacy plans for London 2012.
West Ham United will not take over the Olympic Stadium after London 2012 as Newham Council has withdrawn £40million of funding due to legal challenges.
Tottenham Hotspur and Leyton Orient both sought judicial reviews over the awarding of the stadium to the Hammers.
Now an anonymous complaint, claiming the money being provided by Newham to West Ham represented “state aid”, to the European Commission, have led to fears that court action could drag on for years while the stadium remains empty.
There were also fears that the application for a judicial review by Spurs and Orient could drag on and even if their bids failed they could appeal.
The government is expected to announce today the stadium will remain in public ownership and leased out to an anchor tenant following a new tender process.
It is understood that no contract has been signed with West Ham, allowing the move to a fresh tender process, but the club will be encouraged to bid again.
The Olympic Park Legacy Company will rent out the stadium to a tenant, which could prove less costly for West Ham.
The move also removes doubts about the removal of the running track ahead of the 2017 world athletics championships bid.
The government, the Mayor of London and the OPLC have scrapped the current deal in order to try to end the legal challenges over the stadium’s ownership.
A joint statement by Karren Brady, West Ham vice-chairman, and Kim Bromley-Derry, Newham chief executive, said they welcomed the move and would bid again to become tenants of the stadium.
“We understand Ministers will make a statement later and will not pre-empt that,” the statement said.
“Uncertainty caused by the anonymous complaint to the European Commission and ongoing legal challenges have put the Olympic legacy at risk and a stadium may not be in place by 2014 because of the legal delay.
“We welcome a move by OPLC and Government to end that uncertainty and allow a football and athletics stadium to be in place by 2014 under a new process.
“If the speculation is true, West Ham will look to become a tenant of the stadium while Newham will aim to help deliver the legacy.
“Our bid is the only one that will secure the sporting and community legacy promise of the Olympic Stadium – an amazing year-round home for football, athletics and community events of which the nation could be proud.
“The true legacy of London 2012 will be the creation of jobs and a generation of young people inspired by sport based around a community home for all by 2014.
“We remain committed to help deliver that legacy promise to the people of London and the nation.”