THE future of a proposed multi-million pound extension to Newton Aycliffe town centre has been thrown in doubt.

The long-delayed £25m expansion scheme has been affected by a dispute between the owners of the existing town centre complex and the partners who want to press ahead with the new scheme.

The stand-off is so serious that it could result in a legal battle which might take months or years to resolve.

The proposals include building a Tesco supermarket with car park, an urban park with a youth centre and accommodation for about 20 other retail stores.

There are also plans for a new library, health centre and an elderly people's drop-in centre.

But a joint statement issued by Great Aycliffe Town Council, Sedgefield Borough Council, Durham County Council, developers CTP and Tesco says the scheme is now in jeopardy.

Steve Barker, planning manager at Sedgefield council, said: "The scheme which has been designed requires selective demolition of a limited number of the existing retail units.

"Without this the old and new elements cannot be integrated as required to complete the scheme. The existing owners of the town centre, Daejan Holdings Plc, have expressed their opposition to the current scheme.

"While they say they support the expansion of the town centre, Daejan claim that the proposal has too much retail floor space and the design of the integration is poor. This conflict of views puts in jeopardy a well thought out scheme."

He said: "All parties involved in promoting the site have worked together to find solutions to the design and integration issues.

"Throughout this period there has been a continued decline in the physical environment of the town centre and there has been limited investment in the existing shops.

"Without a new investment in the town centre, the present decline in facilities will continue to the detriment of the residents of Newton Aycliffe."

"Sedgefield Borough Council is now looking at their options to break the deadlock, even to the extent of compulsory purchase of some of or the entire existing centre."

A spokesman for Daejan said the company was not in a position to comment.