The 45,000 seat stadium for Portsmouth Football Club and its associated development which includes 750 apartments, a park and retail outlets was due to be completed in 2011.
Designed by Olympic stadium architects Herzog & de Meuron, it was hailed as an ambitious design that would become one of the world's iconic buildings, but has now become a victim of the downturn.
'Over the past year it has become increasingly apparent that this project may take considerably longer to achieve,' said a statement from the club.
A revised plan will see the stadium completed at a later date, perhaps to tie in with a UK bid for the Football World Cup in 2018 or 2022. Its location on the waterfront at the city's historic dockyard is described as 'stunning'.
Meanwhile the club will re-develop its existing Fratton park stadium and expand its capacity to 30,000 in time for the 2011/02 football season. The £22 million re-development will involve replacing the North Stand with a new stand behind it, filling in the corners at the stand's East and West ends, and rotating the pitch 90 degrees. The East Stand will be rebuilt, and the Fratton End expanded.
The South Stand would also receive improvement work, and become the ground's new away end and the development includes a major new supermarket as well as a new club shop, ticket office and club offices. The cost will be 70% financed by a supermarket on site and the remaining money provided by banks and work will start in November.
Portsmouth FC executive chairman Peter Storrie said that the club remained committed to a new stadium at Hornsea Island in the future.
