End in sight for Wembley saga

A deal to save the new national stadium at Wembley will hopefully be in place before the end of this week, the Football Association announced today.

Although the FA is not yet in a position to meet the four tests set in December by Secretary of State for Culture, Media and Sport Tessa Jowell, it is understood officials have been given the okay to extend the deadline.

That is because the FA and its subsidiary company Wembley National Stadium Ltd are close to finalising a £485million deal to finance the £715m redevelopment with German bankers West Deutsche Landesbank.

Yesterday, West LB and the FA said there were loose ends to tie up, but it is understood that initial terms of agreement have been issued and the package has been approved by the bank's credit committee and board.

Following a six-month inquiry by the Government's sports troubleshooter Patrick Carter, Jowell announced on 19 December last year that Ministers were prepared to back the new Wembley provided the FA passed a series of predominantly financial tests.

The FA is confident the deal with West LB will be closed before Saturday's FA Cup Final, but the Government cannot respond before Friday because of Thursday's local government elections. An FA spokesman said today: "We are optimistic we will be able to make a statement by the end of the week."