Portsmouth Football Club has delayed £600 million plans to build a new stadium and redevelop the existing one.
The club will now make do with a £22 million redevelopment of the existing site instead.
The FA Cup holders last summer revealed proposals for a 36,000-seater waterfront stadium along with an indoor exhibition centre with a 10,000 capacity.
But now the club has told supporters it will be concentrating on increasing capacity at the existing Fratton Park stadium.
The job will involve replacing the North Stand with a new stand behind it, filling in the corners at the stand’s East and West ends, and rotating the pitch 90 degrees. The East Stand will be rebuilt, and the Fratton End expanded, delivering a 30,000 capacity by the start of the 2011/12 season.
The South Stand would also receive improvement work, and become the ground’s new away end.
The projected cost of the project is £22 million, with 70 per cent financed by a supermarket on site and the remaining money provided by banks, according to local paper The News.
Pompey and Sellar Property Group was handling the development, and had also announced proposals for the redevelopment of the 17-acre Fratton Park site for a mix of low-rise residential and retail uses.
Work was originally due to start this spring, although no main contractor had been appointed.
At a fans’ forum last night Portsmouth FC executive chairman Peter Storrie said: ‘This will give us a good extra stream of money and let more people see Portsmouth play at Fratton Park.
“We’re committed to build a new stadium at Horsea but that will be later now, because the club has no money and in the current climate we have very little chance of it being part-financed by development companies.”