The �475m scheme has been beset by problems over the past two years and is now in crisis after being unable to secure adequate funding from the City of London.

"We cannot act as the sole sponsor of the scheme," said an FA spokesman on Tuesday.

"Neither sports governing bodies, nor banks will take the risks associated with such a project."

FA chief executive Adam Crozier assumed more responsibility for the project, which was initially supposed to be completed in time for the 2003 FA Cup.

But demolition work has still not been started, with only �120m of public money via Sport England having so far been received.

Mindful of the sensitivities of the situation so close to a General Election, the government have decided to set up a working party to investigate what possibilities are open to keep the scheme alive.

City bankers Chase Manhattan were expected to try and raise the cash early this year, but without any revised - affordable - plans, they have been unable to do so.

"The scale of the commitment required (to take sole charge of the project) would put our own future in jeopardy and the development of football throughout the country," said the FA.

"The finance needed also far exceeds what the private sector can bear."

Responding to the latest development, Culture Secretary Chris Smith said the goverment would now look at all the available options.

"The government regrets the Football Association's decision to withdraw its support for the current plans for the redevelopment of Wembley Stadium," said Smith.

"It is clear that escalating costs - which have risen from �334m to �660m - have played a key role.

"Given it is clear that the FA cannot complete its project, the government has decided to examine all the options that are available.

"A recent study into the issues surrounding the Commonwealth Games in Manchester has demonstrated the importance of cross government working and the same committee has therefore been asked to examine the national football stadium."