The site could have 10,010 new homes

Greenwich Council's planning committee will on Wednesday be looking at the proposals by the Meridian Delta consortium which wants to turn it into a 20,000-seat sports and concert arena, as well as regenerating the surrounding area.

The plans include 10,000 new homes on the Greenwich Peninsula of which 3,500 would be deemed "affordable".

But London mayor Ken Livingstone has said he will block the application unless the number of affordable properties is increased to 5,000.

If a complete impasse is reached, the matter could be referred to the Office of the Deputy Prime Minister.

Mr Livingstone said: "London needs many more affordable homes for those in housing need and the key workers who run our hospitals, schools and public services, but are being priced out of town."

Urban community

Meridian is planning a complete renewal of the Greenwich Peninsula which would see top entertainment and sporting stars appearing at the Dome, as well as new offices, shops, a new school, a hotel, and 24,000 new jobs.

The deal could result in a �550m return to the government over a 20-year period.

Recent government figures show that the bill simply for keeping the Dome mothballed since July 2001 has risen to �22.9m.

Meridian Delta director Bert Martin said: "We believe the proposals provide the opportunity to create a new urban community for Greenwich and London, delivering a comprehensive sustainable regeneration, integrated with high quality public spaces and a world class entertainment and sporting destination at the Dome."

Greenwich Council leader Chris Roberts said: "The council is determined to ensure that all local residents benefit from the new scheme."