Southend Council has admitted it could have blighted land sales on the Roots Hall site as it looks set to withdraw the threat of compulsory purchase order powers there.

Today, the authority’s cabinet will vote on whether to withdraw from the threat of using CPO action, which was agreed in 2012 in a bid to get the redevelopment of the site underway.

But Southend United has said its move to Fossetts Farm no longer depends on selling the Roots Hall site, as it has a new backer, real estate firm British Land, while Sainsbury’s plans to build a megastore on Victoria Avenue failed to materialise.

Prospects College has land on the site and saw Sainsbury’s decline to buy it several times, while a deal to sell it to Lidl feel through because of the spectre of a CPO, costing the college £3.5million.

Originally, the council would have used its own money to forcibly buy the land, and then get the club, through Sainsbury’s, to reimburse it.

But Independent Ron Woodley, leader of Southend Council, said the threat should be withdrawn as neither the supermarket or the club want the authority to proceed with it.

He said: “We also have to consider that the latest proposals announced by the Club for a new stadium at Fossetts Farm are apparently no longer dependent on the redevelopment of Roots Hall, at least for phase one.

“Most importantly there is the potential for owners of properties affected by the CPO resolution to allege their properties are being blighted, and we must therefore take a reasonable approach to the matter.

“In light of all of these factors, there no longer seems to be a compelling case to justify the compulsory acquisition of the remaining properties in Victoria Avenue and the Prospects site in Fairfax Drive.”

However, he added that a report could come back to cabinet to vote on future CPO action on the site if circumstances change.

The news has pleased the college’s chief executive Neil Bates, who had threatened legal action against the council, and claims holding costs for the site are in excess of £500,000.

He said: “We have consistently said that the CPO threat was unjustified. We are delighted that the Council appears to have listened to that argument.

“We are reasonable people and we have no wish to take legal action against the Council. Hopefully we can now sell the site and move on.

“All the proceeds from this site are invested in education and skills both in Southend and the wider Thames Gateway so this is good news for everyone.”