SOUTHEND United's plans for a new £50million stadium at Fossetts Farm could be forced back to the drawing board because of a dispute over a small strip of land.

A Government planning inspector had no objections to the plans for a new 22,000-seater stadium, shops, hotel and flats.

Final approval had been expected next month, but the scheme is now threatened by a dispute over a strip of land at the western end of the Boots and Laces training ground on Eastern Avenue, which would be used for 20 per cent of the retail development.

Property company Southend Estates Group leases the land to the club, which wants to buy it before the development goes ahead. But Southend Estates is asking for £1.4million more than the club are willing to pay. Club chairman Ron Martin is still confident a deal can be signed.

However, Carl Dyer, from Southend Estates' agents Osborne Clarke, said there was "no realistic prospect" of reaching an agreement.

In a letter to the planning inspectorate, he wrote: "My clients and the football club have considerably different views as to the value of the client's land. The difference is in the order of £1.4million and there is no realistic prospect of agreement between them."

Mr Dyer said Southend United might have to redesign the scheme to omit Southend Estates's land and submit a further planning application.

Mr Martin told the Echo the land was "desirable but not essential" for the whole scheme to go ahead. He said: "We are still in amicable discussions with Southend Estates and we will endeavour to do all we can to resolve the current dispute.

"We hope everything can be resolved, so we can get final approval by July 7."

Southend Estates formed in 1900 and was a major landowner in the town. It was bought out two years ago by property company, the Raven Group.

Company spokesman Vince Donnelly said: "The problem is we have not been able to agree terms with the football club. We don't want to stand in their way and we are on really good terms with Ron Martin.

"I am hopeful we can resolve the issue."