This artist's impression, released in July, has been scrapped

It is understood the figure for the ground had risen to around �450m after original estimates came in at �300m.

Liverpool are now weighing up new plans from Dallas-based architects HKS, who produced the latest futuristic design, and Manchester firm AFL.

Parry said a 70,000-capacity stadium would be "slightly downgraded" and a decision is expected early in 2008.

606: DEBATE What does this news mean for Liverpool?

He also stressed Liverpool were mindful that the cost of their new stadium should not have impact on any cash for transfers.

And the increased costs forced a complete rethink on the project from Liverpool's American co-owners Tom Hicks and George Gillett.

Parry added: "The objective on day one in building the new stadium was to generate more cash to fund the team and we must never get away from that objective.

"We remain confident we can achieve that and still produce a very impressive solution.

"It will be a massive improvement on where we were 12 months ago, if not quite as dramatic as the plans unveiled in the summer.

"We are now considering two schemes but the stadium will be a 70,000-seater.

"The new stadium will be a significant improvement on the original plans and a slightly downgraded version of the new ones.

"The single tier Kop remains fundamental to the design and we are not expecting any delays - it should be on schedule for 2011."