A court battle between engineering giant Cleveland Bridge and its former employer on the new Wembley Stadium project will not begin until early next year, it has emerged.

The Darlington-based firm has been locked in a bitter dispute with Australian company Multiplex, the main contractor on the £757m development, for months.

Cleveland Bridge won the £60m contract to create the stadium's iconic arch feature and roof. But its workers walked off the site last August, as disputes with Multiplex escalated.

The feud intensified when both companies lodged claims in the Court of Technology and Construction - an off-shoot of the High Court.

Multiplex triggered the proceedings, submitting a claim for between £25m and £30m from Cleveland Bridge. But the latter responded by claiming it was entitled to about £21m from its ex-employer.

The matter was due to be heard later this year, but Cleveland Bridge said last night that it did not expect that to be the case.

A spokeswoman for the company said: "It is now likely to be in the first quarter of next year.

"We're waiting for confirmation of the date, but it will be between early January and the end of March. The litigation process is still going forward."

Multiplex has already had to pay nearly £5m to Cleveland Bridge after mediation between the two companies.

The outcome of the court case could be crucial to Multiplex, which claimed earlier this year that Cleveland Bridge's withdrawal meant it would probably only break even on the project.

It has since predicted that it will make a £45m loss, but has insisted that the venue will be open in time for the 2006 FA Cup Final - despite the Football Association booking Cardiff's Millennium Stadium as a back-up.

Any profits for the Australian firm, which has previously worked on Sydney's Telstra Stadium, could depend on the verdict in the court case.