Plans to build a £22m North-East National Army Museum is to be scrapped, The Northern Echo can reveal.

Officials will announce on Monday that the scheme for a northern site on the edge of Catterick Garrison, North Yorkshire, has been shelved.

In a double blow yesterday, the Yorkshire Air Museum at Elvington, near York, was told it was not on the list of resting places for Concorde.

The Catterick project had already won more than £8m in European funding and was expected to create more than100 jobs.

Alarm bells began to ring when the project became bogged down in red tape and a delegation from the county and district councils went to Whitehall earlier this month to press for action.

Despite a sympathetic hearing from Minister Ivor Caplin, the National Army Museum is understood to be on the verge of ditching the project - at least for now.

Assistant director David Smurthwaite said yesterday: "Regardless of the decision, I would like to pay tribute to the help and support we have received from the people in North Yorkshire."

Richmond MP William Hague admitted he was bitterly disappointed.

"I know everyone locally will wish to work hard to try to put it back on track," he said.

Richmondshire council leader John Blackie said: "I can only express my abject disappointment for the community, residents and local business people who would have benefited from having a national attraction on their doorsteps. All we can do is hope there is an opportunity to revive the project."

Meanwhile, the Yorkshire Air Museum was philosophical about its failed bid for Concorde.

Operations manager Ian Dewar said: "We are disappointed at not being selected. However, the museum nevertheless takes great pride to have been among the shortlisted contenders."