A new deal to sell the land is being sought by the club

The two businesses could not settle on a price for the land around the club's Carrow Road stadium and the site, which has planning approval for 330 flats, has been put back on the market.

Norwich City's chief executive Neil Doncaster said the sale of the land is vital to boost the club's finances after the collapse of ITV Digital, but the team's budget was unaffected.

Negotiations between the club and the original developers Wilson Connolly will still continue but the land has been re-marketed to attract new developers and the best possible price.

Wilson Connolly and Norwich City signed a conditional contract for the sale of the land back in July 2002.

Best for club and supporters

However, the conditions included in the contract took some time to complete and the agreement lapsed in September 2003.

Mr Doncaster said: "The club is not forced to sell its land quickly at an under-value and is able to wait for the best possible price for the land.

"Nigel Worthington's playing budget this season is unaffected by the delay".

City chairman Roger Munby added: "We want what is best for this club and its supporters.

"That means endeavouring to ensure the excellently-situated and highly valuable land we own around Carrow Road yields the maximum financial benefit possible."

The collapsed deal will also not affect the club's �6.5m scheme to build a new 8,000-seater south stand.