Chairman Mohamed Al Fayed said the proposed move was off after costs "spiralled out of all proportion".

Fulham moved to Loftus Road from Craven Cottage at the end of the season after unveiling a multi-million pound facelift for the ground.

But in a statement on the official website on Monday, the club announced projected costs in excess of �100m had resulted in the project being scrapped.

Any decisions will not be built on irrational, emotional or impractical thinking Mohamed Al Fayed

The statement said: "It is now obvious that to invest heavily in building a stadium which would only generate revenue, at most, once a week is not a financially viable option.

"To saddle the club with this magnitude of debt in the current financial climate would be foolhardy in the extreme and could seriously jeopardise the long term future of the club."

Fulham are currently on a ground share scheme with Queen's Park Rangers.

But no decision has been made on whether the Premiership outfit will return to Craven Cottage.

It is understood the Cottagers would consider a return to their home since 1896 if a more financially viable alternative became available.

Al Fayed said: "Any decisions we take will be in the interests of stability and the financial survival of the club and not built on irrational, emotional or impractical thinking which could adversely affect the success of the club."

'No talks'

QPR chief executive David Davies insisted there were no immediate plans to continue the club's groundshare agreement with Fulham.

Davies said: "The future of Fulham playing at Loftus Road has drawn a lot of speculation.

"There have been no discussions between the two clubs about extending the current groundshare agreement or making it permanent.

"There have been no talks. But if an approach were made, we would listen, just as we did when we were approached about the current groundshare agreement."