The flaxmill could be bought by the council

Ditherington's flaxmill in Shrewsbury, which has been derelict for more than a decade, was earmarked for an ambitious restoration plan.

In 2000 the historic mill - a forerunner of the modern skyscraper - was bought by developer Richard Capp, who had multi-million pound plans to transform it into a residential and retail development.

But by the beginning of this month little progress had been made and English Heritage offered to take it on and save it from collapse.

Having been unable to make progress with Mr Capp we felt it was time to make it clear that the reasonable offer we had made was not open forever Mary King, English Heritage

But on Wednesday the preservation group dropped its offer saying negotiations had broken down.

Mary King, from English Heritage's buildings at risk register, said: "Having been unable to make progress with Mr Capp we felt it was time to make it clear that the reasonable offer we had made was not open forever."

Perhaps one of the only options left to rescue the 18th Century mill from ruin is for the borough council to apply to the courts for a compulsory purchase order, allowing them to buy the mill.