The 8,000-seat York Community Stadium – which is to be shared by York City Football Club and York City Knights Rugby League Club – will feature a range of sporting, health and educational facilities.

However, ISG has now revealed that it will not participate in the next stage of construction as a result of delays caused by a judicial review into the project.

The review follows a challenge from Vue Cinema against a planning amendment which would have expanded a future theatre in the development from 12 screens to 13. 

Building work is now delayed pending the outcome of a court hearing on 18th January 2017.  

An ISG spokesperson said: “We’ve worked for over two years, alongside our consortium partners, to realise the vision for a new community stadium at York, and successfully delivered the enabling package for the scheme in late 2015.

“Our commitment to the stadium has never been in question and we have worked diligently to explore every opportunity to bring the scheme to site, however, with further delays caused by the judicial review and increasing cost pressures, we’ve been unable to reach a consensus for the next phase of the project.

“We will continue to support our partners as they seek an alternative contractor.”

The stadium and leisure facilities are currently expected to reach completion in 2018.