London v Brum clash over stadium

London and Birmingham are to be asked to go head to head in a race for the right to build a national football stadium.

A government report has recommended that a new competitive tendering process should take place before any final decision on the two bids, the Evening Standard has learned.

The highly confidential document, written by millionaire businessman and sports troubleshooter Patrick Carter, has been sent to ministers, the Football Association and senior officials at the National Lottery awards body Sport England.

His first recommendation was to eliminate a proposal to build a new stadium in Coventry. This leaves a £324 million scheme near the National Exhibition Centre in Birmingham as Wembley's only rival. There is also the possibility that the FA, which will make the ultimate decision, could veto both schemes and decide to continue without a home of its own for English football.

But if the FA does decide it wants a stadium, it will set up the competitive tender process. This will clearly set out the rules of bidding, and give Wembley and Birmingham a deadline to come up with exact details of design, how much it will cost and how that cost will be covered.

They will be asked to sign a legal contract giving cast-iron guarantees that they will be able to fulfil any pledges made in their bid.

The redevelopment of Wembley remains the favourite because the FA would have to return £120 million of Lottery money if it was scrapped.

Wembley, which closed last October, has been in crisis ever since the Football Associatedowned Wembley National Stadium Ltd failed to raise a £410 million loan from the city to complete the £600 million redevelopment a year ago.

Sources close to the Government have made it clear that whatever happens, the FA will retain the right to continue their recent successful policy of taking England games on the road rather than playing every international in one place.