The Government will announce today that the Olympic Stadium deal with West Ham and Newham Council has collapsed, sources said.
Legal challenges by Tottenham and Leyton Orient, plus an anonymous complaint to the European Commission, has led to fears that court action could drag on for years while the stadium remains empty.
A ministerial statement is expected around lunchtime, saying that the stadium will remain in public ownership and leased out to an anchor tenant following a new tender process.
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