A NEW plan for Stratford City is being submitted to the council after the lead company involved in the project moved to cut ties with its partners.

It failed to resolve a dispute over control of the scheme.

London and Continental Railways (LCR) has started proceedings to terminate its link with Stratford City Developments Limited (SCDL), a consortium including Stanhope, Westfield, the Reuben brothers and controversial Wembley Stadium builder Multiplex.

Members of the consortium are understood to have been locked in a bitter power struggle for some months. LCR finally lost patience after a share auction, mediated by investment bank NM Rothschild, failed to resolve matters.

LCR says it has taken decisive action in order to safeguard the future of Stratford City and Olympic developments included in Zone One of the plan.

A revised masterplan for the £4bn regeneration project to the east of the planned Olympic Park, which will now include the athletes village, press centre and car parking for the games, is being prepared for submission to Newham Council in six weeks time.

A spokesman for LCR claimed the project would not be scaled down or altered drastically, but said changes were necessary in the light of alterations to Olympic plans. Commenting on the conduct of members of the consortium, LCR's managing director for property Stephen Jordan said: "I will not apportion blame to any single party, though neither will I absolve any of blame."