WEST Ham United and Newham Council’s deal with the new Olympic Stadium has collapsed.

Legal challenges by Tottenham and Leyton Orient plus an anonymous complaint to the European Commission would have resulted in years of legal battles while the venue remained empty.

The stadium looks set to stay in public ownership and will be instead leased out to an anchor tenant after a new tender process is carried out.

Any new tender process is likely to be covered by the Olympic Park Legacy Company and prospective tenants will be asked to bid for the stadium with the running track remaining in place.

The decision has been taken by the Government, the London Mayor and the OPLC and prospective new tenants will have to pay annual rent which could prove to be less costly for the likes of the Hammers.

It is believed no contract has been signed with the Championship club, allowing the move to a fresh tender process, but the Hammers will be encouraged to bid again.

A joint statement by Karren Brady, West Ham vice-chairman, and Kim Bromley-Derry, Newham chief executive, said they welcomed the move and would bid again to become tenants of the stadium.

The statement said: “West Ham will look to become a tenant of the stadium while Newham will aim to help deliver the legacy.

“Our bid is the only one that will secure the sporting and community legacy promise of the Olympic Stadium - an amazing year-round home for football, athletics and community events of which the nation could be proud.

“The true legacy of London 2012 will be the creation of jobs and a generation of young people inspired by sport based around a community home for all by 2014. We remain committed to help deliver that legacy promise to the people of London and the nation.”